Annual Report 2024 - Chairman's Statement

Dear Shareholder

Welcome to Edrington’s Annual Report for 2024.

Once again, Edrington has demonstrated strong performance, navigating through a challenging economic environment with focus and resilience.

Performance

The strong growth generated in the first six months of the year helped the business to manage the impact of a global slowdown in the second half of the year with core revenue and core contribution delivering double digit growth.

Our strategic focus on ultra-premium spirits continues to drive our success and fuel a cycle of re-investment that has delivered industry-leading performance over several years.

Heritage and Innovation

The results set out in this report are built on a legacy of exceptional performance by generations of dedicated people. Each of our brands is steeped in its own heritage and tradition, and this year we are particularly proud to mark 200 years since The Macallan was first distilled. The brand has launched its 200th anniversary celebrations with a unique partnership with Cirque du Soleil. We look forward to seeing the spectacular products and compelling experiences and stories that the brand will share during the course of the coming year.

It is under Edrington’s stewardship that The Macallan has flourished, attaining its status as the world’s most valuable Single Malt Scotch Whisky. I consider it the primary example of what Edrington’s carefully developed strategy, talented people and steadfast commitment to both investment and innovation can achieve.

Recognising the debt we owe to our predecessors who have nurtured the business with investments that could never be fully realised in their own time, we in turn must invest for the long term. Indeed, in an industry that is more long term focussed than most, our approach and strategy are demonstrably focussed on the long term.

Following on from the partnership with Grupo Estévez in 2023, we have further deepened our investments in the finest Sherry-seasoned oak casks with the acquisition this year of the Vasyma cooperage business based in Jerez, Spain. We also entered a joint venture partnership with Coopers Oak of Ohio, which provides high quality American oak for casks. The full benefits of these strategic investments will be delivered over decades to come.

As we thank those who have contributed to the current health of the business, I would like to remember Sir Ian Good CBE, who sadly passed this year. Sir Ian played a key role in the history of Edrington, working alongside the Robertson sisters to transform their family business into the brand-led international company we are privileged to be a part of today. He achieved this without sacrificing the sisters’ commitment to their people, and also giving more to society.

In my seven years with Edrington, I and my fellow Board colleagues have strived to continue Sir Ian’s mission and keep the Company’s social purpose and values at the heart of a high-performing business.

continues...

Download the Chairman's Statement to read more.