Spirits group Edrington reported a slide in revenue and profits for the year ended 31 March 2026, amid mounting pressure on consumer spending throughout the year, which hit the ultra-premium and prestige categories in particular.
Full-year core revenue (representing sales of continuing Edrington branded products) fell -3% year-on-year to £855 million (US$1.13 billion) on a constant currency basis, with total group revenue (including other income beyond brand sales) reaching £922.3 million (US$1.2 billion), down by -14%.
Pre-tax profits hit £199.6 million (US$264.3 million), down by -23% year-on-year, with the figure down -7% before exceptional items at £256 million (US$339 million).
The international premium spirits company said demand for its core brand expressions led by The Macallan contributed to an increase in core contribution (profits from branded sales and distribution after the deduction of overheads), which rose +1% to £299 million (US$395 million).
The decline in core revenue performance was partially offset by strong momentum across The Macallan’s core range, including double-digit growth in sales of The Macallan 12 Year Old, though sales of 25- and 30-year-old expressions declined.
The company reduced net debt by £425 million (US$562 million) through the sale of The Famous Grouse and working capital savings.
Premium rum brand Brugal continued its positive trajectory, delivering double-digit growth in its home market, the Dominican Republic. Edrington said Brugal 1888 has now become the world’s sixth-largest ultra-premium rum brand.
Edrington’s Europe, Middle East & Africa region saw an increase in core revenue, in addition to growth in China, Latin America and the Dominican Republic.
The financial year also marked several strategic developments. Edrington established a wholly-owned distribution business in India, the world’s largest Scotch whisky market by volume. It also continued the integration of its sherry-seasoned cask supply chain following a series of acquisitions completed between 2023 and 2025.
Commenting on the results, Edrington CEO 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.
Commenting on the health of the wider spirits category, McCroskie said: “The spirits industry continues to face a combination of cyclical and structural pressures, principally the cost of living crisis which has had a marked impact on consumer confidence and therefore discretionary spending. However, we expect the forces that have driven the long-term trend for premiumisation to continue.
“The business is well placed to serve the growing numbers of consumers who are interested in exploring high-quality brands and drinking ‘less but better’,” he added.
“In this environment our policy has been to protect the long-term health of our brands and maintain the foundations required to support sustainable growth as market conditions stabilise.
“We will continue to pursue growth opportunities whilst maintaining discipline over costs and investing in our brands, our operations and sustainability. This will ensure that the business is well placed to perform strongly in the future.”
Edrington Chair Angus Cockburn added: “The past 12 months have been demanding for spirits producers worldwide, and Edrington has faced the same headwinds as our peers. In that context, it was encouraging to see the business stabilise after a difficult prior year and deliver a resilient performance.
“This progress speaks to the value of our long-term strategy and the dedication of our people, who continue to navigate uncertainty with determination and skill.
“The turbulence we have faced has been caused in large part by weakened consumer confidence, driven by ongoing conflicts that are further impacting the high cost of living. This is exacerbated by a rising tide of increasing government regulation, rising taxation, and the high cost of doing business, especially in our home market of the UK.”
He continued: “We welcome progress towards improved market access in key regions, including China, where tariffs were halved, and through the free trade agreement between the UK and India. Over time, such developments have the potential to support the growth of our ultra-premium portfolio.
“Edrington has a well-established reputation for investing for the long term, and this discipline underpins the resilience of both the business and our people. I am pleased to report that we have not compromised on our strategic intent of delivering the world’s leading ultra-premium spirit.
“We have worked hard and taken action to mitigate the challenging market conditions but have not taken our eye off the ball in terms of delivering our long-term ambitions.” ✈
The Macallan 18 Year Old Colour Collection and The Macallan Harmony Collection Organic Cherrywood Lapsang Tea reflect the company’s focus on delivering innovation within its core brand. Both featured on a recent episode of The TREX Factor. Watch the full video above, filmed by Alexander Roux and hosted by The Moodie Davitt Report Founder & Chairman Martin Moodie.
