The charity-owned company behind Perth whisky label The Famous Grouse has revealed how it invested £13.3m in dedicated distribution channels in south-east Asia and the United States during a “strong year” of growth.
Spirits firm The Edrington Group said the investment had “transformed” its route to market, with the company now fully in command of its operations in the 11 countries which account for 80% of its total sales.
The successful international expansion coupled with continued growth in revenue and profits growth led chief executive Ian Curle to declare himself “optimistic” for the long-term.
Annual results showed turnover at the company, which also owns The Macallan, Highland Park and rum brand Brugal, climbed 3% to £607.7m during the 12 months to the end of March, while pre-tax profits before exceptional charges also rose 3% to £174m.
Exceptional charges, which also included £1.3m for the restructuring of Edrington’s operations in the Dominican Republic and Asia, totalled £14.6m for the year but were just a fraction of the £274.8m impairment of the Brugal brand booked this time last year.
Mr Curle said he was pleased report on another “strong year of growth”, marked by a 10% hike in shareholder payouts to a total of 37.4 pence per share.
“We have again increased our annual turnover, profit and dividend over the past five years our turnover and profit have increased by 45% and 84% respectively, demonstrating the success of our international expansion,” he said.
“Our strategy of investing in quality and long term growth will continue this year. We have committed over £100 million to transform The Macallan estate with a new distillery and visitor centre, consolidating The Macallan’s position among the world’s leading luxury spirits as well as delivering additional capacity to meet growing demand.
“We remain optimistic about the company’s long term prospects despite continuing economic headwinds in some countries and political unrest in others.”
Edrington has opened new offices in California’s Orange County, Dallas and Chicago and expanded its US workforce from 35 to 110. There were a total of 239 new hires during the year a new recruitment record for the firm – but directly-owned distribution only began in earnest at the start of April.
It now employs more than 2,300 people worldwide including around 100 people in commercial, finance and sales teams at West Kinfauns, and a further 25 at the Glenturret distillery and Famous Grouse Experience by Crieff.
Malt from Glenturret, reckoned to be Scotland’s oldest active distillery, is still used in The Famous Grouse, which was first created by Perth’s Matthew Gloag & Son in 1896.
The label subsequently passed to Highland Distillers in 1970, before that group was bought by Edrington in 1999. The group is controlled by The Robertson Trust, which donated more than £15m to a variety of charitable causes last year.
Net debt was reduced by £13m to £437.5m during the year, while the highest paid director understood to be Mr Curle received a remuneration package totalling £803,000 and £697,000 in vested payments from a long-term incentive programme granted in 2011.
Mr Curle also paid tribute to former finance director Richard Hunter, who retired last month after 33 years’ service with the company. He will be replaced by former AG Barr man Alex Short in September.