Macallan whisky maker Edrington cheers ‘resilient’ full-year performance
“Our performance this year reflects both the strength of our brands and a disciplined approach to execution in a challenging market” – Scott McCroskie, CEO
Edrington, the whisky and spirits producer behind Speyside premium malt The Macallan, has cheered a “resilient” full-year performance in the face of a volatile market.
Bosses at the firm, which has a portfolio that also includes Brugal premium rum, said the business would “continue to pursue growth opportunities”.
The results for the year to the end of March show that core revenue declined by 3 per cent, compared with the previous year, reflecting lower demand for “high-value prestige products”, which was mitigated by a strong performance in The Macallan core products, including double-digit growth in sales of The Macallan 12-year-old.
Profit before tax was 7 per cent lower year on year, reflecting the absence of a one-off gain in the prior year from a sale of maturing stock, together with the impact of adverse currency rates. The proceeds of the sale of The Famous Grouse, alongside working capital savings, enabled a £425 million reduction in net debt.
Chief executive Scott McCroskie said: “Our performance this year reflects both the strength of our brands and a disciplined approach to execution in a challenging market.
“Whilst consumer demand at the very top end of our products remains subdued, the continued growth of our core ranges has enabled us to deliver a modest increase in core contribution. Our leading brand, The Macallan, has continued to perform strongly, gaining market share across a number of our key markets.
“With the company’s balance sheet strengthened by strong inventory management and materially reduced debt, Edrington is on a strong footing as it navigates a continually volatile environment.”
He added: “We will continue to pursue growth opportunities whilst maintaining discipline over costs and investing in our brands, our operations and sustainability.”
Edrington is headquartered in Scotland and employs more than 2,800 people in its wholly owned and joint venture companies, with over half employed outside the UK. It distributes its brands to more than 100 countries.
Edrington’s principal shareholder is The Robertson Trust, which has donated some £421m to charitable causes in Scotland since 1961.
Comments
Want to join the conversation? Please or to comment on this article.