Edrington beats challenging trading environment to report 4% profit rise

UK. Spirits company Edrington has reported a 4% increase in profit to £91 million (US$115.6 million) for the year ending 31 March 2019.

Core revenue – from Edrington-owned products – was up 9% from 2018 to £679.8 million (US$836.4 million) and core contribution rose 6% to £231.8 million (US$294.4 million).

Highlights over the year were the launch of Edrington Mexico, brand investment of £137.3 million (US$174.4 million) – an increase of 7% over the previous year, and the opening of a new distillery for the company’s leading brand, The Macallan.

The opening of the new The Macallan distillery was among the highlights of Edrington’s financial year

Edrington also reported strong growth for its other malt whiskies: Highland Park, The Glenrothes and Naked.

Despite the continued challenging trading environment for blended Scotch resulting in a decline in contribution for The Famous Grouse, it increased market share in some key markets including the UK.

Brugal, Edrington’s premium rum, delivered double-digit growth in sales and contribution, principally in its home market, the Dominican Republic.

Edrington Chief Executive Scott McCroskie said: “We have made further progress this year towards building the world’s leading portfolio of exceptional super-premium brands.

“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.

Edrington Chief Executive Scott McCroskie paid tribute to the previous holder of his post, Ian Curle

“In line with Edrington’s increased focus on super-premium spirits, exceptional proceeds of £124.2 million (US$157.8 million) 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, Southeast 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.

He added: “These results underline the strength of the business built up during Ian’s 15 years as chief executive. 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.”

As reported, Edrington has revealed new products from The Macallan, Highland Park, The Glenrothes and Famous Grouse brands for the vital Asian market. The company has also opened the first in a new generation of The Macallan boutiques in travel retail, at DXB, with full details to follow shortly.

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