Edrington reports ‘encouraging’ results and takes stake in No.3 London Dry Gin


International ultra-premium spirits company Edrington has reported ‘encouraging’ financial results for the year ending 31 March 2021 given the challenging circumstances.

Its core revenue came in at £576.2m for the year to the end of March, as a result of issues created by Brexit, the global pandemic and US whisky tariffs. It also reported that its profits fell by 21% to £178.4m with the net debt standing at £375.5m, which is an improvement of £76.3m from the previous year.

Although, the company admitted the outcome was better than it was expecting.

Chief Executive Scott McCroskie, said, “In last year’s annual report, I anticipated a decline in profitability after several years of consistent growth as a result of the Coronavirus pandemic and tariffs on Single Malt Scotch Whisky in the USA, our largest market. Our reported results confirm that this was indeed the case, although I believe that the relatively modest declines represent a good outcome in the circumstances.
“The reduction in net sales reflects pandemic-related restrictions as well as trade destocking primarily in the USA. Our decision to maintain relatively high levels of brand investment meant that core contribution reduced by more than net sales, although that was mitigated by a range of cost reduction measures. Our free cash flow and net debt both improved as a result of these measures, and I am pleased that the company remained well within its lending limits and banking covenant tests.
“I am proud of the way our people have responded to the pandemic, and of the results we have achieved. The fundamentals of our business are strong, and our brands are in good health. Although the pandemic will continue to impact our business for some time to come, I am encouraged by the growth in sales we have seen in the first quarter of this financial year. I am confident we can navigate the challenges we face and that we are ready to progress from a position of strength.”
Edrington has also agreed to take a significant minority stake in No.3 London Dry Gin, the ultra-premium gin owned by Berry Bros. & Rudd.
The agreement, which is expected to conclude imminently, will see No. 3 distributed across Edrington-owned distribution markets including the USA, APAC, Global Travel Retail and the Nordics. Berry Bros. & Rudd will continue to distribute in markets including the UK, Germany, Italy, Spain, Australia, and Belgium. 
Scott McCroskie added, “I am really pleased that Edrington will enter into a strategic partnership with our long-term partners Berry Bros. & Rudd on the No. 3 London Dry Gin brand. No. 3 complements the existing Edrington portfolio of exceptional ultra-premium spirits adding an award-winning and a beautifully elegant, classic London Dry Gin to our line-up of Single Malt Scotch Whisky, Rum, American Whiskey, Blended Scotch Whisky, and Tequila.”