Spirits company Edrington grew its pre-tax earnings 4.6% in the last financial year, on the back of booming international sales of single malt The Macallan.
The owner of The Famous Grouse reported revenues of £617.1m and earnings before interest and tax of £181.1m in the year to 31 March 2015. The figure excludes ‘exceptionals’, including a reduction in unbranded sales, which Edrington said did not reflect the core strength of the business.
The company’s brand turnover was up 1.8% on the back of a 10.5% growth for single malt The Macallan – the market leader in Russia, China, Japan, South Korea and Hong Kong, and the number two in the US. Edrington’s other single malt, Highland Park, also saw double digit turnover growth, it said.
The company put its success in the US and Asian countries down to the establishment last year of its own sales, marketing and distribution companies for these markets. In the UK, it is part of distribution partnership Maxxium, along with Beam Suntory.
“Edrington enjoyed a good year in which we saw the benefits of controlling our distribution in the key spirits markets of the US and South East Asia and continued strong demand for our premium spirits,” said chief executive Ian Curle.
“Our whisky portfolio performed ahead of the market and this shows the strength of our brands, which are well placed to benefit further from continuing trends towards premium spirits.
“Edrington’s focus in the coming years will be on this increasingly important premium end of the market – with The Macallan as the Ultimate Luxury Spirit – and we continue to invest to support our growth objectives and our long-term prospects.
“Our strategy of investing for the long-term is evidenced by our expansion in the travel retail market and the on-going work to transform The Macallan estate, where work on the new distillery and visitor centre remains on track for completion in Spring 2017.
“Finally, we welcomed two new directors during the year: Paul Hyde as managing director regional power brands and Alex Short as chief financial officer. Both are excellent appointments and are already making a significant contribution to Edrington.”
In the UK, Famous Grouse has seen the fourth largest growth in the alcohol category – adding £24.4m sales, for a total of £214.7m [Nielsen 52 w/e 25 April 2015].
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