Edrington full-year revenue grows 9%
The Macallan maker Edrington has reported a 9% increase in revenue to £679.8 million (US$864.3m) for the year ending 31 March 2019, boosted by Scotch brands Highland Park, The Glenrothes and Brugal rum.
Profit for the period increased by 4% to £91.6m (US$116.5m), with “strong growth” from single malt Scotch whiskies Highland Park, The Glenrothes and blended malt whisky The Naked Grouse.
Edringon’s brand investment for the period grew 7% to £137.3m (US$174.5m) while core contribution increased 6% to £231.8m (US$409m).
The Macallan “consolidated its position as the world’s most valuable single malt”. In June 2018, the group opened its new £140m (US$188.4m) distillery for The Macallan, which will increase the brand’s production by a third. Edrington has pledged an on-going £500m (US$635.9m) investment in The Macallan, which in addition to the new distillery will be used for warehousing and Sherry cask sourcing.
Edrington said the “continued challenging trading environment for blended Scotch” resulted in a decline for Scotch brand The Famous Grouse. However, the brand “successfully increased market share” in key markets including the UK.
Brugal rum delivered double-digit growth in sales and contribution, due to the “success” of Edrington’s premium brand strategy in the brand’s home market, the Dominican Republic.
The Macallan owner added that it has “increased international reach” with the launch of its own marketing and distribution unit in Mexico.
In June 2018, Edrington announced plans to sell Scotch brands Cutty Sark and Glenturret. French drinks group La Martiniquaise-Bardinet purchased Cutty Sark blended Scotch in November for an undisclosed sum.
In April this year, luxury goods company Lalique Group paid £15.5m (US$20.2m) for a 50% stake in Glenturret Scotch whisky as part of a joint venture with Swiss entrepreneur Hansjörg Wyss.
‘Strong international growth’
“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,” said chief executive Scott McCroskie.
“In line with Edrington’s increased focus on super-premium spirits, exceptional proceeds of £124.2m 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, South East Asia and the USA, which is the world’s largest market for premium spirits.”
McCroskie also said the results “underline the strength of the business” under the helm of Edrington’s former chief executive Ian Curle, who retired in March 2019.
“It is an honour to succeed him as leader of this unique company,” added McCroskie.
“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.”
Edrington entered the American whiskey category in September last year with the purchase of a minority stake in Wyoming Whiskey.