Caution at Scotch whisky giant despite sales leaping above £1.1 billion

Edrington, the whisky and spirits producer behind Speyside premium malt The Macallan, has overcome a tough consumer backdrop to report a double-digit rise in annual sales but has warned of challenging times ahead.

The drinks giant said its flagship Macallan brand had continued to underpin the strong full-year performance. There was high demand for premium products including the brand’s collaboration with luxury car-maker Bentley Motors to produce The Macallan Horizon and with Stella and Mary McCartney on the newest edition of The Macallan Harmony Collection.

Markets in Asia Pacific showed strong growth, with China performing particularly well. The Macallan Colour Collection is said to have generated “outstanding early results” in the global travel retail sector.

Prestige products have been helping to drive sales and profits at Macallan whisky maker Edrington.

The financial results for the year to the end of March revealed core revenues of just under £1.17 billion, an increase of 11 per cent on the year before. Reported profit before tax was up 6 per cent at £411 million. Brand investment was increased by 16 per cent to £262.1m during the year.

Chief executive Scott McCroskie said the Glasgow-headquartered group had demonstrated “robust growth” despite a global reduction in consumer spending in the second half of the financial year.

“Edrington has navigated a challenging year to deliver financial results that are among the best in the spirits industry,” he said. “Our strategy of focusing on ultra-premium spirits continues to deliver healthy brands and a strong underlying performance.

“However, we consider that the economic pressures that we saw in the second half of last year will adversely affect demand. While we will continue to invest in our brands, in our operations and in sustainability, the business is planning for the coming year on the basis of lower levels of growth than we have experienced since the end of the pandemic.”

Edrington employs more than 3,000 people in its wholly owned and joint venture companies. The business, whose main shareholder is The Robertson Trust, owns its route to market in 16 countries and distributes its brands to more than 100 countries through joint ventures and third-party agreements. The trust has donated some £367m to charitable causes in Scotland since 1961.