Glenfiddich maker’s profits soar but sales slow

Glenfiddich owner William Grant & Sons has reported record profits in 2014/15, however the group’s sales declined following a reduction in the distribution of third party brands.

Stella David has attributed William Grant & Sons’ success to “investing in the long-term”

The UK-based group, which also makes Hendrick’s gin, reported a profit after tax increase of 4% to £139.8m in the year, with sales declining from more than £1bn to £933.2m.

However, William Grant has attributed the fall to a “planned reduction” in the distribution of third party brands, allowing the company to focus more on its own portfolio, which grew sales by 9% year-on-year.

“This success was driven by our constant focus on brand building and investing for the long-term,” said Stella David, chief executive of William Grant & Sons. “The business and our brands are well positioned to continue their growth in 2015 and beyond.”

Despite recently being usurped as the world’s best-selling single malt whisky by The Glenlivet, Glenfiddich delivered “strong value growth” in 2014/15, as did The Balvenie Scotch and Hendricks gin.

William Grant said its record results were achieved despite the negative foreign exchange impact and an overall decline in the market for Scotch whisky.

Capital expenditure remained at record levels including a €35m investment in a new Irish malt distillery for Tullamore Dew in Ireland, marking the return of distilling to Tullamore town after 60 years.

In September last year, William Grant confirmed it had acquired Scotch whisky-based liqueur brand Drambuie for an undisclosed sum from the MacKinnon family.

The group was recently named official spirits sponsor of the Rugby World Cup.