William Grant sees record profit as sales recover

Independent spirits group William Grant & Sons saw profit after tax soar 8.9% in 2015, hitting a record high of £147.4 million (about US$191.2m).

CEO Simon Hunt describes the 2016 spirits industry as a ‘challenging marketplace’

The performance was driven by key single malt Scotch whisky, the Glenfiddich, which saw volume growth of 5% year-on-year.

In addition, a planned reduction in third-party distribution deals and a resulting focus on the core portfolio saw reported sales turnover increase 6.1% to £882.5m (US$1.14 billion), the company said in its 2015 financial statement.

At the same time, William Grant & Sons announced it had revised its 2014 turnover and profits down to £832.7m (US$1.08bn at today’s conversion) and £135.3m (US$175.4m) respectively in order to comply with new UK accounting standard FRS102.

The 2015 performance was delivered despite “challenging conditions in terms of increased volatility across Eastern Europe, the Middle East and Africa, the adverse impact of foreign exchange and increased competition”, the company added.

Despite the economic conditions, demand for super-premium spirits in the US and Asia remained “robust”.

In addition to Glenfiddich, the company also noted that Hendrick’s gin continued to grow “rapidly”, and named blended malt Monkey Shoulder its eighth “core brand”.

“This success was driven by our constant focus on building brands and investing in them for the long term,” said recently appointed CEO, Simon Hunt.

“We have also continued to invest in our operational capabilities and our route to market infrastructure. It has been a challenging market place but we are well positioned to continue our growth in 2016 and beyond.”

William Grant is set to launch a revamped bottle design for Drambuie, its 2014 acquisition, at the upcoming TFWA World Exhibition.

At the end of 2015, former CEO Stella David stepped down and was subsequently elected the Bacardi Limited board in June 2016.