Edrington, the spirits company behind brands like The Macallan, Highland Park, The Glenrothes, has reported a strong financial performance for the year ending 31 March 2019, posting a 9% increase in core revenue and 6% rise in core contribution.
Core revenue (from Edrington branded products at constant currency) was £679.8m, which was up 9% from 2018, while profit for the financial year was £91.6m, up 4% on 2018. Brand investment hit £137.3m, an increase of 7% on last year.
Edrington says that its leading brand, The Macallan’ ‘consolidated its position as the world’s most valuable single malt Scotch Whisky, opening its new distillery and brand home’ while there was ‘strong growth for Highland Park, The Glenrothes and Naked.’
Despite the continued challenging trading environment for blended Scotch resulting in a decline in contribution (the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs) for The Famous Grouse, it successfully increased market share in a number of key markets, including the UK.
Brugal, Edrington’s premium rum, delivered double-digit growth in sales and contribution, principally through the success of its premium brand strategy in its home market, the Dominican Republic.
Commenting on the results, Scott McCroskie (pictured), chief executive, said, “We have made further progress this year towards building the world’s leading portfolio of exceptional super premium brands.
“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. 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.”
Mr McCroskie also paid tribute to former chief executive Ian Curle, who retired at the end of the financial year. “These results underline the strength of the business built up during Ian’s 15 years as chief executive. It is an honour to succeed him as leader of this unique company.
“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.”