Distiller Edrington hikes profits amid volatile market conditions
SCOTT WRIGHT
Ian Curle said he has urged the Government as often as possible to make trading with Europe as easy as possible following the Brexit decision.
The latest figures on exports from the Scotch Whisky Association showed there was a four per cent rise in overseas sales to above £4 billion in 2016.
Malt exports grew by 12 per cent to exceed £1bn for the first time and Mr Curle noted this bodes well for The Macallan and Highland Park, as well as The Glenrothes brand which recently returned to the Edrington fold.
A new £100m distillery and visitor centre for The Macallan, which grew revenue by seven per cent last year, is due to be completed this year. Edrington said it now has 100 per cent control of its global duty free market operation for the brand after buying out the
remaining shares in Edrington Webb Americas, the travel retail joint venture.
Elsewhere in the portfolio, Mr Curle said in the review that The Famous Grouse and Cutty Sark, which grew its profits, will benefit from increased marketing, noting that the brands are “poised to capitalise on any upturn in the blended category.”
And he said its Brugal rum brand is set up to carry on the momentum it had built up last year, during which it enjoyed “significant volume and profit growth” in its core markets of The Dominican Republic and Spain.
Mr Curle added: “Despite short-term uncertainty, we are confident about the
medium and long-term prospects for the business. With its premium brand portfolio, proven strategy and management capability, Edrington has established the necessary momentum to deliver further growth.”
Edrington notes in the review that the value of its inventories increased by £24.5m to £456.9m as it continued to invest in whisky stocks to support the long-growth of its brands.
The period saw it book exceptional costs of £8.6m relating to the consolidation of its head office, including its sales and marketing function, to 100 Queen Street Glasgow, which subsequently led to it closing its West Kinfauns office in Perth.