LONDON – Luxury goods maker Burberry says first-half revenue rose 5 per cent as the company benefited from the decline in the pound following Britain’s vote to leave the European Union.
Revenue increased to 1.16 billion pounds ($1.42 billion) in the six months ended Sept. 30, from 1.1 billion pounds in the same period last year.
The pound has lost nearly a fifth of its value since the June 23 referendum, boosting the value of overseas sales when they are converted back into the U.K. currency.
The pound’s positive contribution is evident in the fact that Burberry’s underlying revenue, which excludes changes in the exchange rate, fell 4 per cent.
Burberry says Tuesday that the pound’s weakness should add at least 125 million pounds to full-year adjusted profit based on Oct. 12 exchange rates.