Welcome to our Annual Report 2022.
When I wrote the introduction to our Annual Report last year, we had just completed the first full year of the Covid pandemic. I wrote of the resilience demonstrated by the business and the creditable performance delivered in difficult circumstances.
This year, in the face of continuing challenging headwinds, the Company has delivered outstanding results while continuing to invest for the future.
The year was once again characterised by the need to respond to Covid measures taken by governments around the globe. In addition, we were faced with the implications of the Ukrainian war including suspending shipments to Russia. The combination of Covid and the war have caused significant disruption in global supply chains, with implications for availability and cost of purchased dry goods.
On a positive note, we were pleased that following pressure from the Scotch Whisky Association and the UK Government, the US Government suspended the additional tariffs imposed on Single Malt Scotch Whisky.
In the face of this turbulence, one might have expected considerations of strategy to have been put on hold. However, the Company has continued to refine its strategy and drive through its implementation. Our focus has been increasingly on ultra-premium spirits, with positive results for The Macallan, The Glenrothes, Highland Park and Brugal.
Our long-term strategy of strengthening our routes to market continued with acquisition of our joint venture partner’s stake to create Edrington UK, and the creation of Edrington France and Maxxium BeLux.
The combination of effective responses to the challenging market conditions and the successful implementation of the Company’s strategy continues to pay dividends and all the Company’s main brands performed well. Similarly, all regions produced results ahead of expectations.
As a consequence, results for the year are at an all-time record high. Sales of our brands increased by 45% on the previous year, and core contribution by 53%. To put this performance into context, when the pandemic struck in early 2020, we expected that it would take us until 2022/23 to get back to our previous trend line. For Edrington to have bounced back in two years and delivered all-time record results this year is excellent.
The year ahead
Download the Chairman's Statement to read more...