Russia and Asia boost Edrington’s Scotch sales

The Edrington Group, now simply known as Edrington, has posted an end of year profit before tax of £148.8m, an increase of 5.2% on last year.

Highland Park’s brand extension like the 40-year old have helped drive Edrington’s profit growth

Publishing its results for the year ending 31 March 2012, Edrington saw turnover grow by 0.5% to £556.1m, driven largely by growth in the group’s higher profit markets of Asia, Russia and the US.

Ian Curle, chief executive of Edrington, said: “I am pleased to report that Edrington continues to make good progress.  We have grown earnings, reduced our debt and strengthened our strategic position with brand growth in emerging markets and the addition of distribution companies in China and Hong Kong.”

The Macallan enjoyed a successful year with profit increasing by 40%, while Highland Park’s various brand extensions and subsequent stronger price point have continued to help drive sales growth for the brand in the US, UK and Nordic regions.

Edrington’s rum brand Brugal continue to hold on to its leadership in Spain and the Dominican Republic, despite falls in volume as the Spanish economy and Dominican Republic markets struggle.

Cutty Sark also experienced a fall in volume as a result of poor sales in Greece, Spain and Portugal.

However, Curle commented: “We are confident about the long term potential of our premium spirits brands and the increasing demand in the emerging world economies.”

Edrington reduced its debt by £52.5m to £463.5m over the year, contributing to an overall debt reduction of £165m over the past three years.

“Following three years of consistent growth and debt reduction, the Company is in a position to harness this potential through investment in our people, brands, route to market, and maturing inventory. Brand investment will target emerging markets and continue to focus on innovation and premiumisation,” said Curle.

Edrington’s forward-looking plan is to focus strategically on its core markets of the US and Asia, with increased investment going into South East Asia, Russia, emerging Europe, the Middle East and Sub-Saharan Africa through new partnerships.

The group is also looking to make a ‘significant investment’ in its operational sites in Scotland and the Dominican Republic to support its forecast future growth.