30 June 2014
Edrington Financial Results for the Year Ended 31 March 2014
• Group turnover up 3% to £607.7m
• Group profit before tax up 3% to £174.0m
• Dividend per share up 10% to 37.4p
• Launch of sales and distribution companies in South East Asia, the Middle East and the USA
• Over £100 million investment committed to The Macallan estate
• The Macallan grew across a broad range of territories where it is established as the pre-eminent premium malt.
• Highland Park had an excellent year, assisted by its award-winning Warriors range. The brand shows growth patterns that resemble The Macallan’s earlier development
• The Famous Grouse performed strongly in the UK and Sweden and showed continued progress in emerging markets. A focus on innovation led to a successful Ginger Grouse (an alcoholic ginger beer) test market, and subsequent roll-out to the rest of the UK.
• Brugal continued to invest in premiumisation and innovation, including new packaging and the launch of Brugal Suspiro (a low calorie premium golden rum) in Spain.
• Cutty Sark showed a small volume increase in its key southern European markets. The brand’s new premium expression, Prohibition, is generating considerable trade and consumer interest in the USA.
• Edrington prepared Snow Leopard vodka for new international markets in Asia and the USA. This highly engaging and premium vodka was created to fund conservation of an endangered species and joined the portfolio in 2013.
Edrington, Scotland’s premier producer and distributor of global spirits brands, including The Macallan, Brugal, The Famous Grouse, Cutty Sark, Highland Park and Snow Leopard vodka today announces its financial results for the year ended 31 March 2014.
The company has delivered another strong performance, with revenues up 3% to £607.7 million and profit before tax up 3% to £174.0 million.
Edrington increased its presence in both established and emerging markets and made significant investment in its brands and its route to market.
Edrington’s route to market was transformed during the year with the establishment of new sales, marketing and distribution companies in South East Asia (Singapore) and the Middle East (Dubai) and in April 2014 Edrington Americas was launched, meaning the company now owns the route to market for its leading brands in the world’s largest premium spirits market.
In keeping with Edrington’s approach of investing for the long term, during the year plans were announced for an iconic new Speyside distillery and visitor centre for The Macallan. Edrington is investing over £100 million in the project and working with world-renowned architects Rogers Stirk Harbour + Partners – work is scheduled to begin in autumn 2014 and is due for completion in spring 2017.
Commenting on the results, Ian Curle, Chief Executive of Edrington said: “I am pleased to report that Edrington has delivered another strong year of growth. 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.
The market for premium spirits worldwide continues to grow with more and more consumers gaining an appreciation for our brands. Last year we made significant investments in our route to market and now own the distribution capability in 11 countries which, together with our joint ventures, collectively represent 80% of Edrington’s total sales.
Our strategy of investing in quality and long term growth will continue this year. We have committed over £100 million to transform The Macallan estate with a new distillery and visitor centre, consolidating The Macallan’s position among the world’s leading luxury spirits as well as delivering additional capacity to meet growing demand.
We remain optimistic about the Company’s long term prospects despite continuing economic headwinds in some countries and political unrest in others.
Finally, I would like to thank Richard Hunter who retired in June after 33 years’ service with us, including 20 as finance director – he played an instrumental role in the success of Edrington and I wish him a very happy retirement. I’m delighted that Alex Short will be joining us in September from AG Barr as our new finance director.”
The Annual Report & Financial Statements are available on Edrington’s website by clicking here.
Notes to editors
Edrington owns some of the leading Scotch whisky and rum brands in the world, including The Macallan, Brugal, The Famous Grouse, Cutty Sark and Highland Park. In addition to its core brands, Edrington acquired Snow Leopard vodka in 2013.
Edrington owns its route to market in 11 countries, and operates the remainder through joint venture and third party agreements
The Company produces its brands at a number of specialist operations covering every facet of distilling, blending and bottling.
Edrington is headquartered in Scotland and employs around 2,300 people worldwide, with over 60% employed overseas.
Edrington is owned by a charitable trust, The Robertson Trust, which donated over £15m million to a variety of charitable causes last year.
The highest paid director’s annual remuneration for the year-ended 31 March 2014 was £803,000. This is comprised of an annual salary of £414,000, an award under the annual incentive plan, pension contribution and the employee share scheme.
Separately, £697,000 has vested from the long-term incentive plan granted in 2011 – vesting under this plan is based on the achievement of stretching financial and strategic performance targets over a three year period, during which Edrington increased profit before tax by 23%, shareholders’ earnings by 24%, and reduced debt by £89m.
For further information
Corporate affairs director, Edrington
M: +44 (0) 7771 982 502