French liquor company Rémy Martin managed to boost its profit in its fiscal year 2015/2016, mainly thanks to the brandy sales that reached record heights.
Disappointing Metaxa sales
These strong sales have helped Rémy Martin's turnover grow 8.9 % to more than 1 billion euro and operational profit 14 % to 178.4 million euro. The positive exchange rate fluctuations did help a lot, because the company would only have achieved a 6 % growth without those fluctuations.
Net profit reached 110.4 million euro, up nearly 17 %, as the liquor manufacturer mainly sold more brandy, liquors and whiskey in the United States, Africa, Germany, the United Kingdom, the United Kingdom and Japan. However, liquor brand Metaxa underperformed because of the economic situation in markets like Russia and Greece.
Turnover and profit from collaborations also dropped, mainly because the distribution agreement with champagne brands Piper Heidsieck and Charles Heidsieck in the United States came to an end.