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Annual Report 2022

Key Financial Highlights

Core Revenue


Total revenue from our sales of continuing Edrington branded products on a constant currency basis.


Core revenue grew by 45% to £821.2m, with strong growth across all our business units as we benefited from the reopening of the on-trade and travel retail.

Brand Investment


Marketing expenditure on our core brands, on a constant currency basis.


During the year our brand teams executed a record level of investment of £170.7m, up 46% on the previous year, representing a reinvestment level of 21%, which is up from 19% in 2020.

Core Contribution


Profits from our branded sales and distribution after the deduction of overheads on a constant currency basis


Core contribution grew at 53%, faster than our core revenue, reflecting strong growth in our higher margin products. We also benefited from a continued partial suppression of our normal level of operating costs as Covid restrictions resulted in a lower level of business travel than normal. Our core contribution is now 28% higher than our pre-covid performance.

Earnings before Interest and Tax* (EBIT)


EBIT is a measure of the profit generated by the business before the impact of interest, tax, minority interest charges and items deemed to be exceptional in nature.


EBIT grew by 54%, in line with the increase in core contribution.

*before exceptional items

Free Cash Flow


Net cash flow excluding the movements in borrowings, shares, dividend payments, expansionary capital expenditure and exceptional items.


Free cash flow represents the cash the business generates after maintaining our asset base. The increase in the year reflects the underlying strong performance of the business allowing for the reinstatement of normalised cash outflows including pension deficit repair contributions and investment in capital expenditure.

Retained Profit*


Earnings after tax and minority interests excluding exceptional items.


Retained profit grew by 18%, a reduction in the growth of EBIT that reflects additional deferred tax charges of £26.6m (after the deduction of minority interests) resulting from a change in the UK corporation tax rate. Growth excluding this change is 53%.

*before exceptional items

Strategic Inventories


The net book value of our maturing inventories of whisky and rum and the casks in which they are held.


The 8% growth in strategic inventories results from the production volume of malt whisky being substantially higher than current sales to support our projected growth over the next 12 years and beyond. This also reflects an annual uplift for the cost of warehousing and insurance. The insurance value of our maturing whisky and rum is significantly higher than cost which is the basis for our carrying value.



The ratio of bank and private placement debt at hedged rates, where applicable, after the deduction of cash balances, to reported earnings before interest, tax, depreciation and amortisation.


The 35% reduction in the ratio is driven by our higher EBITDA.