Inver House sees profits fall but demand in whisky grow

Scottish distillers Inver House has seen its profits fall for 2012 but also highlighted significant growth in global demand for its Scotch whisky brands, particularly Old Pulteney.

Inver House Distillers’ managing director Graham Stevenson said drop in profit was due to ‘essential’ programme of investment

The company – part of International Beverage Holdings – today announced in its end-of-year financial results for 2012 that profit before tax had dropped 21% to £12.3 million.

Yet the company’s turnover rose by 13% to £91.1 million – an increase that has been attributed to the release of high-aged extensions including Old Pulteney 40 Year Old and the status of the Old Pulteney 21 Year Old as ‘World Whisky of the Year’ in Jim Murray’s Whisky Bible.

The group hailed 2012 as a milestone year for the Old Pulteney brand, which saw global volume rise by 16.2% and sales value by 24.7%.

Graham Stevenson, Inver House Distillers managing director, said: “We have seen another excellent performance from our brands in 2012 and we share in the optimism of the Scotch whisky industry and its outgoing potential for global growth and success in the longer term.”

Gross profit margins fell 8.2% – from 35.8% to 27.5% – but the distillery claimed this is due to a ‘programme of investment’ in stock and in its individual sites.

The company claimed that if the effects of the ‘exceptional items’ included in 2011 are excluded, profit before tax dips by 11.6%.

Stevenson said of company’s overall profit decrease: “The investment that we have made in stock reserves in 2012 has been an essential part of developing our strategy for the Inver House brand portfolio as consumer demand increases in the global market.

“While it has had an impact on our profit margins this year, the underlying picture is very positive for our brands and our business as we respond to the exciting opportunities the industry will encounter in terms of shifting global demographics and emerging markets.”

The distillery’s portfolio includes Balblair, anCnoc, Speybum, Hankey Bannister and Caorunn.