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Annual Report 2022

Chief Executive's Review

 

Chief Executive Officer

Scott McCroskie

"I am confident that our company is well-positioned to deliver further success in the future"

This annual report details a highly successful year for Edrington, in which our brands and key markets bounced back from the challenges of last year to deliver excellent results.

We achieved a 53% year-on-year increase in core contribution in 2021/22, which was 28% above the pre-pandemic levels in 2019/20. Our growth this year comes in the context of a recovery in the global premium spirits market, although our portfolio has been able to outperform the market by a significant margin, benefitting from an early return to investment in our people, brands and capabilities.

Performance Highlights 

We have returned to the growth trend we saw in the years before the pandemic, with net sales increasing across all business units. The financial report details further improvement in cash flow and debt ratios, despite record investments across many areas of the business.

The growth in the value of sales outstripped the growth in volume, reflecting the success of our strategy to focus the business on the most premium products, along with positive market and channel mix.

The Macallan is well-established as the world’s most valuable Single Malt Scotch Whisky, and it built on that leadership last year with exceptional value growth. The team’s single-minded focus on the quality, craft, and sustainability of the brand was evident in remarkable consumer experiences in cities around the world, and in a range of new products that included The Macallan Harmony, Distil Your World New York and The Reach, an 81-year-old that was distilled during the Second World War.

Our Malts business unit, comprising The Glenrothes, Highland Park and Naked Malt, also performed well across their key markets, growing sales value ahead of volume. We see significant potential for these three distinctive malt whiskies.

It was an exceptional year for Brugal in its core markets of the Dominican Republic and Spain. It is now well ahead of its pre-pandemic performance and continues to increase the value of sales ahead of volume growth. Brugal’s ultra-premium expression, 1888, is performing well due to focused investment in brand building and dedicated teams in key locations.

Sales of The Famous Grouse are back to pre-pandemic levels, with its strongest results in the core markets of the UK and Sweden. Whilst the blended Scotch category remains under pressure, the appeal of this well-loved brand is enabling it to grow sales and profitability. 

Market Development

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