Ré my Cointreau Profit Lifted by Weaker Euro

PARIS—French liquor group Ré my Cointreau SA said on Thursday that first-half profit for its 2016 fiscal year rose 7.1% to €69 million ($73.30 million) because of favorable exchange rates.

Sales for the six-month ending Sept. 30 grew 6.1% to €501 million as sales made outside of Europe were boosted by a lower euro.

Taking out the effects of exchange rates, profit shrunk by 8% while sales declined 5.9%.

Similar to other cognac makers, Ré my Martin is still feeling the effects of falling demand in China, a market that was once booming earlier this decade. Cognac sales have dropped dramatically over the past year as China's anti-corruption campaign discourages people to splurge while the country's economic slowdown has also hurt consumer confidence.

Sales of Ré my Martin cognac declined 3.1% to €313 million. While the company said sales in the U.S. were strong, the weak Chinese market still weighed on overall results.

Despite the fall in profit, the company affirmed its forecast of "positive growth" in its operating profit "at constant exchange rates" for the entire fiscal year.

Write to Jason Chow at jason.chow@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 26, 2015 02:25 ET (07:25 GMT)

Remy Cointreau (PK) (USOTC:REMYY)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024