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Drambuie saw profits slide in run up to sale

Published:  30 March, 2015

Drambuie saw its profits slide nearly 10%, in the run up to its sale to William Grant & Sons, according to accounts filed at Companies House.

Profits at the whisky-based liqueur fell 9.17% to £3,199,000, with turnover also down 3.77% to £21.393, in the 12 months to 30 June, hit partly by the impact of foreign exchange.

Turnover in Europe, which makes up around 46% of its total market fell 1.97%, with American sales also hit 5.30% to £935,000. Sales throughout the rest of the world, which accounts for around 12% of sales, also dipped 9.38%.

Chairman Richard Stone reported the company had a clear strategy to rebuild the brand, with a key focus on the US, UK and global travel sector, as well as emerging markets including India and Vietnam.

"We have continued our significant brand investment throughout the year, and both gross profit and marketing contributions key performance indicators have been achieved.," he said. "With the impact of foreign exchange stripped out over both years, this results in an increase of 4% versus 2013."

Exceptional items noted in the report included fees payable on potential sale of the business and unwinding of discount on its "onerous lease provision".

The company was bought by William Grant in September 2014 for an undisclosed sum, despite analyst speculation that Japanese drinks business Suntory was interested.