Macallan maker Edrington hits £1bn revenue
UK-based Edrington has reported ‘outstanding growth’ after exceeding £1 billion (US$1.26bn) in core revenue for the first time during the year ending 31 March 2023.
The company hitting £1bn in core revenue equated to a 22% boost compared with its full-year (FY) results for 2021-2022.
Edrington’s leading brand ,The Macallan, led the company’s performance, as it saw high demands for premium products including The Macallan James Bond Collection, The Red Collection 77-year-old and The Macallan M series.
Core contribution rose by 25% during fiscal 2022/23, reaching £413.6 million (US$523m).
Scott McCroskie, Edrington chief executive, said: “Our business has delivered another highly successful year, despite a range of external challenges. Revenue from our spirits brands passed £1bn for the first time and core contribution increased by 25% from last year’s record result.
“This strong trading performance has allowed us to invest industry-leading sums behind our brands, our people and our operations, as well as funding a substantial buyback of shares.
“The business delivered a strong performance in almost every country where our products are sold, with particularly strong sales in China, Hong Kong, Taiwan, the UK, Spain, the Dominican Republic and the USA.”
Edrington reported that The Glenrothes, Highland Park and Naked Malt performed well across key markets.
In core markets in Northern and Eastern Europe, The Famous Grouse whisky ‘performed well’, with ‘good recovery’ in global travel retail.
Premium rum brand Brugal generated ‘outstanding growth’ in the Dominican Republic and Spain. Ultra-premium expression Brugal 1888 has continued to perform strongly, the company said.
In March this year, The Macallan purchased a 50% stake in Spanish producer Grupo Estévez to have exclusive supply of its Sherry casks.
The terms of the deal were not disclosed, and saw the two form a joint venture.
In April, Edrington became a majority shareholder in Wyoming Whiskey, increasing its stake to 80%.
Edrington’s brand investment across its FY2022/23 increased by 28% to reach £232.5m (US$294m).
The company also launched its Stillhouse podcast, and met its carbon reduction targets as part of its commitment of reaching net zero by 2045.
McCroskie added: “Whilst the economic landscape will continue to be challenging, the trading environment is improving.
“We have healthy brands, an effective strategy, record levels of investment in the business, great people and strong momentum. I am confident that Edrington is well-positioned to deliver sustainable success in the future.”