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Edrington Financial Results 2016-17

29 Jun 2017

Edrington Financial Results 2016-17
Edrington, the international premium spirits company, announces its financial results for the year ended 31 March 2017.

Corporate Summary 

• Core revenue (Total revenue excluding the impact of currency and trade sales) of £668.1m, +6% versus prior year
• Brand Investment of £110.7m, +18% versus prior year
• Core contribution of £204.3m, +6% versus 2016
• Profit for the financial year of £91m +32% versus 2016 (£69.2m)
• Free cash flow of £98.3m (2016: £62.6m)

Edrington’s 2020 Strategy, Perfect The Macallan, Accelerate Highland Park, Develop Super-Premium, Optimise Regional Power Brands, and Focus for Success, now in its third year, is embedded in the organisation through business units and has positively impacted results.

• The strategy has been supported with higher levels of investment in brand advertising and promotion, increased innovation, and greater focus on consumers, which has contributed to an encouraging performance. 
• Edrington achieved core contribution growth, improved the quality of its P&L, strengthened brand equities, and improved its balance sheet.


Perfect The Macallan

• The Macallan delivered another strong year of sales volume and revenue growth, enabling higher levels of brand building investment whilst delivering profit growth.
- The brand’s new distillery and brand home will be completed this year.
- The company completed 100% coverage of global duty free/travel retail with the buyout of remaining shares in Americas travel retail JV, Edrington Webb.


Accelerate Highland Park

• Highland Park achieved contribution growth in line with Edrington’s overall performance.
- The brand’s packaging has been revamped for 2017-18 to reflect its Viking Soul positioning


Develop Super Premium

• Edrington’s premium portfolio was strengthened by the return of The Glenrothes Single Malt

 

Optimise Regional Power Brands

• Regional Power Brands had a strong year of growth led by Brugal
• The Famous Grouse strengthened its leading position in the UK, delivering its highest ever market share. (source: Nielsen)
• Cutty Sark performed well in Spain and grew overall profit.
• Brugal Rum’s focus on premium resulted in significant volume and profit growth in its two core markets, The Dominican Republic and Spain.

 

Edrington, Scotland’s premier producer and distributor of global spirits brands, including The Macallan, The Famous Grouse, Highland Park, Cutty Sark, The Glenrothes, Brugal, and Snow Leopard Vodka, today announces its results for the year ended 31 March 2017.

The Company delivered core revenues of £668.1m (+6% versus 2016), and core contribution of £204.3m (+6% versus 2016) as Edrington’s portfolio of premium brands responded to an 18% increase in brand investment.

Edrington’s strengthened financial position was reflected in total equity rising to £685m (2016: £604.7m), free cash flow of £98.3m (2016: £62.6m), and ROCE (Return on Capital Employed) increasing to 23.2% (2016: 21.3%).

Profit for the financial year was £91.0m, an increase of 32% versus 2016, reflecting core contribution growth and the impact of the fall in value of Sterling.

Commenting on the results, Ian Curle, Chief Executive of Edrington said: “2016-17 was a significant year of growth for Edrington despite a difficult backdrop of economic and political volatility, and a fiercely competitive marketplace. Since its introduction in 2015 our strategy – Perfect The Macallan, Accelerate Highland Park, develop Super-Premium, Optimise Regional Power Brands – has gained momentum and positively impacted results. Higher levels of investment in brand marketing, increased innovation, and greater focus on consumers have led to an encouraging performance.

"Despite short term uncertainty we are confident about the medium and long term prospects for the business.

"With its premium brand portfolio, proven strategy, and management capability, Edrington has established the necessary momentum to deliver further growth.”