Annual Report 2026 - Financial Review

Group Financial Performance Overview

2025/26 has continued to be a year of external challenges and change, however against this backdrop Edrington has adapted quickly to reduce the cost base and strengthen our balance sheet, whilst delivering a resilient profit performance of 1% growth on our favoured management measure of underlying business performance - core contribution. This measure excludes discontinued and non-core activities and the effect of changes in currency rates.

Our reported earnings before interest and tax (pre-exceptional items) show a decline of 10% in contrast to the growth in core contribution of 1%. This significant difference is due to both a negative currency impact on the translation of our profits versus the prior year and a non-recurring sale of maturing inventory in the prior year.

It is with particular satisfaction that we can report a material reduction in our net debt this year and a resulting strengthening of our balance sheet. We have increased our free cash flow in the year through a focus on improving working capital and particularly finished goods inventory. In addition, the proceeds from the sale of The Famous Grouse, together with the reduced working capital associated with the brand have further reduced our debt. Our net debt reduced by £425m to finish the year at £265m, a 62% reduction.

Group Financial Performance (on a constant currency basis)

Core Revenue

Core revenue declined by 3% due to a negative product mix with strong growth in The Macallan 12-year-old being offset by lower volumes of higher-value prestige expressions. Brugal and The Glenrothes contributed revenue growth whilst Highland Park reported a decline.

Core revenue grew in our Europe, Middle East & Africa region, in addition to notable growth in China, Latin America and the Dominican Republic. We also outperformed a declining Single Malt category in North America. A number of markets continued to be affected by de-stocking of our customers, whilst the underlying consumption was more encouraging.

Independent industry data for the calendar year 2025 confirms that we have grown value market share of both the Single Malt category and the wider super-premium and above Scotch Whisky categories.

Brand Investment

Our level of brand investment reduced during the year to bring it into line with the lower core revenue and reflecting a particularly high level of spend in the prior year relating to The Macallan 200th year anniversary. There was a focus on improving the efficiency of the spend and increasing investment in our highest growth opportunities. We continue to reinvest at industry-leading rates, and our brand health metrics demonstrate the long-term health of our brands.

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