Fine wine and spirits merchant Berry Bros & Rudd has reported a double-digit decline in profits despite cutting costs and A&P spend to mitigate for “a stagnating fine wine and spirits market”.
Operating profits excluding en primeur at BB&R fell 12.9% to £3.0m, while EBITDA slid by 3.9% to £9.7m in the 12 months ended 31 March 2025.
The showing was an improvement on the 77% slide in profits reported by BB&R in the year prior. Losses before tax and exceptional items, however, continued to widen to £4.4m.
Chiefly to blame was an 8.2% decline in revenues excluding en primeur, to £225.8m.
“Exceptionally challenging market conditions” resulted in an 18% decline in revenues within BB&R’s ‘sales & service’ channel, according to the supplier. Revenues from brands including No.3 Dry Gin fell by 6%.
The Hotaling & Co US spirits business, however, saw a 2.3% increase in sales driven by “growth across several product categories”.
Revenues from the business’s 3 St James’s Street premises in central London also rose by 16%.
To combat falling fine wine sales, BB&R revealed it had successfully slashed operating expenses by 8.5% to £225.1m.
This was attributable to “lower costs of sales, decreased advertising and promotional spend, and reduced payroll and benefits expenditure”, it said.
Meanwhile, cash balance generated from operating and investing activities rose by £54.1m following “the sale of freehold and investment properties during the year” alongside a reduction in group stockholdings.
BB&R said it had used proceeds from property disposals to pay down bank balances, resulting in a £6.7m decle in its cash position compared to the year prior.
BB&R’s investment in the Hambledon Vineyard business in 2023, alongside growth in auctions and overseas markets, were “expected to be key drivers of growth in future years”, the supplier added.
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