Scottish spirits stalwart Edrington reported an “industry-leading” rise in annual revenues on the back of soaring demand for its premium brands.
The Macallan, Highland Park and Glenrothes owner reported a 9% rise in overall revenues to £679.8m for the year ended 31 March.
Growth was shared between three of the company’s business units, The Macallan, Malt Whiskies and premium rum Brugal, which all generated double-digit net sales growth, rising 11%, 21% and 10% respectively.
The Famous Grouse was the only division to see weaker performance, with sales down 3% on the previous year as the Scotch whisky brand continued to experience a “challenging” trading environment.
“As we begin 2019 with the launch of our new vision of building the world’s leading portfolio of super premium spirits, it is very encouraging that we do so against a background of such strong demand for our brands,” said chief financial officer Paul Hyde.
“Our overall growth in core revenue is both industry leading and a continued acceleration of the trend of the last three years.”
Volumes grew 2% in the year, with growth primarily driven by brand “premiumisation” and price increases across Edrington’s offering.
Profits for the year, excluding exceptional items, rose 4% to £91.6m, while EBIT surged 8% to £223.3m helped by the impact of a weaker pound.
Outside of the UK, Edrington achieved “strong international growth” driven by higher demand in China, south east Asia and the US.
For its new financial year, Edrington said it planned to continue expanding into “super-premium” spirits, with investments planned across the business, including more premium packaging options.
At the end of 2018, the company sold its Cutty Sark and Glenturret whisky brands to focus on its premium portfolio. Back then, it said that shifting the attention to its posher brands would “help Edrington capitalise on the long-term prospects from premium spirits”.
Edrington said it is “working hard” to prepare for any outcome from the ongoing Brexit negotiations, as mounting political and economic uncertainty around the UK’s exit from the European union continues.
CEO Scott McCroskie said: “Like many businesses with significant trade with Europe, we are working hard to be as prepared as possible for any outcome from the ongoing Brexit situation.
“We are monitoring the ongoing trade disputes between the US and Europe to prepare for any potential tariff impact that could affect Scotch Whisky.
“I am proud of what we have already achieved, and I am certain that with an intensified focus on premiumisation, we can deliver outstanding success in the future.”
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