Edrington celebrates return to growth in 2014

Edrington, producer of The Famous Grouse and The Macallan Scotch whiskies, has bounced back from a £90.4 million loss in 2012/13 to report a year of “strong growth”.

Ian Curle, CEO of Edrington, said the company experienced “strong growth” in 2013/14

In its full year 2014 financial results to 31 March, the Glasgow-based firm reported a 3% increase in turnover, reaching £607.7m, and net profit of £74.4m.

The group reported a significant loss of 90.4m last year after its Brugal rum brand struggled to meet sales expectations in its key Southern European markets.

Profits have now returned to growth in 2014, a year which has seen Edrington announce £100m investment in a new distillery and also take distribution in-house in a number of key markets.

The company revealed plans to build a new Speyside distillery and visitors’ centre for The Macallan, while the brand’s existing site is to be mothballed.

In June last year, the group also said it intended to “significantly expand” its international distribution network with a focus on the emerging markets, leading to the launch of Edrington Singapore, Edrington FIX in Dubai, and more recently, Edrington Americas.

“I am pleased to report that Edrington has delivered another strong year of growth,” said Ian Curle, CEO of Edrington. “We have again increased our annual turnover, profit and dividend – over the past five years our turnover and profit have increased by 45% and 84% respectively, demonstrating the success of our international expansion.”

‘Optimistic’ for the future

Curle added that Edrington now owns distribution arms in countries which, together with its joint ventures, represent 80% of the firm’s total sales.

“We remain optimistic about the company’s long term prospects despite continuing economic headwinds in some countries and political unrest in others,” he said.

The company reported that The Macallan grew across a range of territories, while Highland Park Scotch had an “excellent year”, mirroring The Macallan’s earlier development.

The Famous Grouse meanwhile “performed strongly” in the UK and Sweden, and also “showed continued progress” in the emerging markets.

Cutty Sark showed small volume increases in Southern Europe, while its recently launched Prohibition bottling is “generating considerable trade a consumer interest”.

Troubled Brugal rum battled declines by continuing to “invest in premiumisation and innovation” after suffering a £274.8m write-down in 2013 due to “economic depression” in Southern Europe

After joining Edrington’s portfolio in 2013, Snow Leopard vodka has been prepared for new international markets in the US and Asia.

It was also revealed that Edrington’s finance director Richard Hunter, who has been with the company for 30 years, is be replaced by Alex Short following his retirement in September.

Edrington’s chairman, Norman Murray, said of the recent financial results: “Despite some economic headwinds affecting the growth of spirits in emerging markets, Edrington’s premium portfolio of brands is well placed to grow further.”