Interparfums' net income leaps 68% in first half of 2017

On Thursday, the Interparfums group published its results for the first half of 2017, with a net income of €21.7 million - up 68% on a yearly basis - reflecting strong revenue growth in the period and the group's tight control of fixed costs.

The net income rise is even greater than that recorded in the first half of 2016, when a non-recurring tax bill of €1.8 million, following a fiscal audit of the group’s subsidiaries, weighed on Interparfums' net income.

According to the group's press release, thanks to Interparfums' tight control of fixed costs, promotional expenses in the first half of the year, which increased by 40% on a yearly basis notably due to several new product launches, "have not affected the operating result," which improved by 53% year-on-year.

Operating margin in the period in question was 15.8% of revenue, well above the group's annual operating margin target, which is between 13% and 13.5%.

Revenue for the first half of the year, as already reported at the end of July, reached €209.3 million, up 29% on a yearly basis.

"As anticipated, the launch of the Coach fragrances in the second half of 2016 and of the Mademoiselle Rochas line in the first half of 2017 - the first major initiative for this brand - gave a renewed impetus to the group," while the Montblanc and Jimmy Choo perfumes, the mainstays of Interparfums' portfolio, enjoy "consistent success," said CEO Philippe Benacin, quoted in the press release.

In July, the group hiked up its annual revenue target, now forecast at €400 million, which would be equivalent to an upturn of more than 9% compared to 2016.