Spirits company Edrington has recorded pre-exceptional profits of £91 million (US$118 million) for the financial year ended 31 March 2017, up +32% compared to last year.
Pre-tax profit (pre-exceptional) was £189.6 million (US$246 million), up +30%, and core revenues of £668.1 million (US$868 million) increased +6% versus last year.
Edrington saw a continued strong performance for The Macallan in travel retail, with double-digit growth led by the US. Earlier this month, Edrington assumed full ownership of its travel retail business in the Americas after buying out partner WEBB’s interests in its joint venture.
The company said travel retail is a ‘key’ market for premium spirits such as The Macallan. The brand’s first boutique store in Taiwan’s Taoyuan International Airport has quickly proved itself a success, Edrington noted. The store has been designed to incorporate design elements of the new distillery, which will open in 2018.
Edrington recorded strong volume growth for Brugal rum in travel retail, driven by cruise lines in the USA.
The introduction of The Orkney single malt with Viking Soul’s new single cask programme in travel retail in combination with increased marketing activity boosted Highland Park’s reputation among repertoire malt customers, Edrington said.
The company’s 2020 Strategy, ‘Perfect The Macallan, Accelerate Highland Park, Develop Super-Premium, Optimise Regional Power Brands, and Focus for Success’, now in its third year, positively impacted results.
Highland Park achieved contribution growth in line with Edrington’s overall performance. The brand’s packaging has been revamped for 2017-18 to reflect its Viking Soul positioning.
Edrington’s premium portfolio was strengthened by the return of The Glenrothes Single Malt.
The Famous Grouse strengthened its leading position in the UK, delivering its highest ever market share while Cutty Sark performed well in Spain and grew overall profit, Edrington noted.
Edrington Chief Executive Ian Curle said: “2016-17 was a significant year of growth for Edrington despite a difficult backdrop of economic and political volatility, and a fiercely competitive marketplace. Since its introduction in 2015 our strategy – Perfect The Macallan, Accelerate Highland Park, develop Super-Premium, Optimise Regional Power Brands – has gained momentum and positively impacted results. Higher levels of investment in brand marketing, increased innovation, and greater focus on consumers have led to an encouraging performance.
“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.”
