FDBusiness.com

Scottish distiller Edrington, which produces global spirits brands, including The Macallan, The Famous Grouse, Cutty Sark, Highland Park Scotch whiskies, Brugal rum, and Snow Leopard vodka, has reported earnings before interest and tax (EBIT) pre exceptionals of £181.1 million on revenues of £617.1 million for the year ended 31 March 2015. The results reflect a strong performance from the company’s whisky portfolio but a subdued performance from Brugal. Eliminating the effect of a reduction in unbranded sales resulted in underlying EBIT growth of 4.6%, which the company feels properly reflects the core strength of the business.

Last year Edrington established its own sales, marketing and distribution companies in the US, South East Asia and the Middle East. Taking control of the company’s route to market has resulted in the brands, most notably The Macallan, continuing to expand their presence in the world’s most important premium spirits markets.

Edrington also invested in the increasing important travel retail market and this year saw the launch of its new Global Travel Retail unit, based in Singapore, as well as a new joint venture based in Miami serving the market in the Americas and the Caribbean.

In recognition of the subdued level of consumer demand in Spain and the Dominican Republic, Edrington has recorded a non-cash impairment charge to the carrying value of the Brugal brand. Edrington is continuing to focus on the premium market for Brugal after delivering 50% growth of the brand’s premium expressions, Extra Viejo and XV, in the last year.

Ian Curle, chief executive of Edrington.

Premium and super-premium are forecast to remain the fastest growing segments of the overall spirits market. As a result, Edrington’s 2020 strategy is focused on building on its investments made in the brands and the route to market to enable it to further exploit opportunities in these categories, as well as realising the potential of Snow Leopard vodka and innovating in rum and whisky.

Ian Curle, chief executive of Edrington, comments: “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. 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.”

He continues: “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.”