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Edrington reveals rise in sales and profits

Published:  20 June, 2019

Edrington has reported a 9% increase in core revenue and a 4% rise in profits for the year ending 31 March 2019.

Sales hit £679.8m, up 9% from 2018, while profits rose to £91.6m.

Edrington said its leading brand, The Macallan, had consolidated its position as the world’s most valuable single malt, and opened its new distillery and brand home.

It also said there had recorded “strong growth” for its other malt whiskies, Highland Park, The Glenrothes and Naked.

And while the “continued challenging trading environment for blended Scotch” had resulted in a decline for The Famous Grouse, it had successfully increased market share in a number of key markets, including the UK.

Further afield, Edrington said it had increased its international activity with the launch of Edrington Mexico. And Brugal, its premium rum, delivered double digit growth in sales and contribution through the success of its premium brand strategy in its home market, the Dominican Republic.

“We have made further progress this year towards building the world’s leading portfolio of exceptional super premium brands,” said chief executive Scott McCroskie.

“A 9% rise in core revenue and 6% growth in core contribution is encouraging as it has been achieved against a backdrop of significantly increased brand investment, upgraded packaging and investment in capacity and capability. In line with Edrington’s increased focus on super premium spirits, exceptional proceeds of £124.2m were received last year from the sales of the Cutty Sark and Glenturret brands.

“The business has delivered strong international growth that reflects continuing consumer demand for our products, particularly in China, South East Asia and the USA, which is the world’s largest market for premium spirits.”

McCroskie also paid tribute to former chief executive Ian Curle, who retired at the end of the financial year. “These results underline the strength of the business built up during Ian’s 15 years as chief executive,” he said. “It is an honour to succeed him as leader of this unique company.

“I am proud of what we have already achieved, and I am certain that as we intensify the focus on our super premium brands, we will deliver further success in the future.”

Edrington said the results exclude exceptionals, chiefly the profits from the sale of Cutty Sark and Glenturret, and have been restated to reflect discontinued operations and a change in accounting standards.