PARIS — Inter Parfums SA reported net profits gained 25 percent last year, bolstered by lighter expenses and strong sales in the fourth quarter.
The Paris-based subsidiary of Inter Parfums Inc., of New York, said Monday that its net income reached 29.2 million euros, or $32.4 million.
The company’s operating margin ended the year higher than expected, at 14 percent versus 12 percent.
Operating profit at Inter Parfums SA was 45.8 million euros, or $50.8 million, up 46 percent on-year.
As reported, company revenues for 2015 were 327.4 million euros, or $363.6 million, a 10 percent gain that was driven by strong performances by Jimmy Choo and Montblanc fragrances and a positive foreign exchange environment. On a constant-currency basis, sales increased 2 percent.
Dollar figures are converted at average exchange for the period in question.
“In light of the uncertain global economic environment, we have adopted a cautious approach for 2016,” stated Philippe Benacin, Inter Parfums SA chairman and chief executive officer, who added the company is confident about 2016. “Our good performances at the start of this year thus allow us to confirm our sales target of 340 million euros [or $379 million at current exchange] for the 2016 full year.”
“With a total marketing and advertising budget of nearly 80 million euros [or $89.2 million] for 2016, we have chosen to allocate substantial resources to develop our brands, in particular for the fall launch of Coach fragrances. In this context, and based on the euro-U.S. dollar exchange rates within a 1.10 to 1.15 range, we expect an operating margin of between 12 percent to 13 percent,” said Philippe Santi, executive vice president and chief financial officer of the company.