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Mackmyra private label ‘strong contributor’ to cash flow

Mackmyra’s private label division was a “strong contributor” to the Swedish whisky maker’s improved cash flow in 2016, the business arm’s first full year of operation, its CEO has said.

Mackmyra’s third-party, private label production was a “strong contributor” to cash flow improvements in 2016

While sales for the single malt distillery climbed 18% to SEK73.4 million (about US$8.1m) for the 2016 financial year, operating losses remained stubbornly high at SEK13.6m (US$15.m), but still down from SEK17.3m (US$1.9m) in 2015.

According to CEO Magnus Dandanell, the firm’s private label segment was a “strong contributor” to cash flow improvements for the business.

“A strong contributor to the recent improvement in cash flow is the Private Brand segment, in which we develop and bottle whisky in collaboration with others,” Dandanell said.

“The business segment, which was started in 2015, made strong progress in 2016 (+72%), mainly with Motörhead whisky and Sweden Rock, but also with small bottlings.”

The third-party production sees Mackmyra produce the liquid for the brands, which then handle sales in Sweden and for export.

“The close of Q4 2016, with 32% growth, a positive cash flow despite the increased pace of distillation and substantial amortisation payments, and an operating result that is just about ready to break even (excluding the quarter’s nonrecurring item of SEK 1.4 million, the operating result is positive), illustrates the positive spiral that we have now entered and that we must leverage moving forward,” Dandanell added.

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