Premium spirits company Edrington exceeded £1 billion in core revenue for the first time in its latest financial year, to 31 March 2023, with the recovery in travel retail sales “ahead of expectations” according to the group.
In its annual results statement Edrington said: “We have seen our global travel retail business rebound strongly this year, with a recovery above our pre-pandemic performance.”
The company announced a +25% rise in core contribution (profit from branded sales and distribution after overheads) and hailed a year of “outstanding growth and investment”. Pre-tax profit for the group reached £387.7 million, a rise of +43% year-on-year.
Edrington’s leading brand, The Macallan, continued to lead performance, with high demand for premium products including The Macallan James Bond Collection, The Red Collection 77-year-old and The Macallan M series. The company said: “The Macallan continued to grow in all regions, most notably in North Asia and Global Travel Retail.”
The Glenrothes, Highland Park and Naked Malt performed well, growing value sales ahead of the increase in volume.
The Famous Grouse performed well in its core markets in northern and eastern Europe, with good recovery in travel retail and a strong performance in the UK, said Edrington.
Premium rum Brugal showed strong growth in its home market of the Dominican Republic and in Spain, its leading international market.
Corporate highlights last year included the acquisition of a 50% stake in Grupo Estévez of Jerez, securing a sustainable supply of the Sherry wines to season The Macallan’s signature oak casks, and taking a majority stake in ultra-premium American whiskey brand Wyoming Whiskey.
Chief Executive Scott McCroskie said: “Our business has delivered another highly successful year, despite a range of external challenges. Revenue from our spirit brands passed £1 billion for the first time and core contribution increased by 25% from last year’s record result.
“This strong trading performance has allowed us to invest industry-leading sums behind our brands, our people and our operations, as well as funding a substantial buyback of shares.”
He hailed particularly strong sales in key markets such as China, Hong Kong, Taiwan, the UK, Spain, the Dominican Republic and the USA.
Edrington this week also launched a new corporate brand identity “inspired by its people, values and heritage”. At the heart of the new identity (right) is The Bond icon, a symbol that takes inspiration from its heritage branding and from the family crest of the company’s founders, the Robertson family. ✈
