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Annual Report 2023 - Key Financial Highlights

Annual Report 2023

Key Financial Highlights

Core Revenue


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


Core revenue grew by 22%, exceeding £1billion for the first time. This reflects strong growth across all of our business units and is driven by improved market, channel and product mix, together with price increases.

Brand Investment


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


Brand investment grew by 28%, ahead of core revenue growth, which increases our reinvestment ratio to 21.5%. This reinforces our commitment to invest behind our brands at market-leading levels to support superior growth.

Core Contribution


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


Despite increased cost inflation and a 28% increase in brand investment, Core contribution grew by 25%, reflecting the improvement in pricing and performance of our prestige products.

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 40%, reflecting the strong growth in core contribution, with a further benefit from foreign exchange movements.

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. Cash flow continues to be robust and reflects our strong performance allowing for increased investment in capital expenditure and maturing stocks for the future growth of the brands.

Retained Profit


Earnings after tax and minority interests excluding exceptional items.


Retained profit grew by 84%, an increase in the growth of EBIT due to the additional deferred tax charges in the prior year suppressing the retained profit comparison. Underlying growth excluding this change was 42%, in line with EBIT.

Strategic Inventories


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

The 9% growth in strategic inventories results from an increase in the volume and cost of stock laid down to support our projected future long-term growth.

Net Debt / EBITDA


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 18% increase in the ratio is driven by the increase in net debt as a result of increased investment in assets and infrastructure, partly offset by higher EBITDA.

Earnings Per Share (pence)


Earnings after tax and minority interests excluding exceptional items, divided by the weighted average number of shares.

The earnings per share increase follows the increase in retained profits, with a slight increase due to the share buy-back in February 2023 reducing the number of shares in circulation.

Dividend Per Share (pence)


The total dividend paid per share for the financial year.

Our policy is to grow the dividend at a rate that reflects the medium-term underlying growth of the business.