Single malts lead sales rise at Inver House Distillers

Inver House managing director Martin Leonard said sales growth was 'encouraging' amid challenging conditions. Picture: Contributed

The distiller – the Scotch whisky subsidiary of global drinks group International Beverage Holdings – overcame “challenging” emerging markets to report a sales rise of 7.4 per cent to £67.3 million for the year to September.

This includes a double-digit jump in revenues from Inver House single malts, which grew by more than 12 per cent in the period, reflecting wider growth for its portfolio of core brands.

Sales from its flagship single malt Old Pulteney, produced at Pulteney Distillery in Wick, leapt by 20 per cent, while the company’s “super premium” Caorunn gin, distilled at Balmenach, reported a 23 per cent increase.

This helped lift annual operating profits from £7.7m to £9.3m, while pre-tax profits rose by more than £1.5m to reach £8.8m. Gross profit margins were up to 39 per cent, compared to 36.6 per cent in the previous year, with its core offering accounting for a larger percentage of sales.

Inver House pointed to continued investment in its single malt brands, including increasing stock laydown by 3 per cent to £122m as well as driving packaging developments and its marketing operations.

The business flagged a £1.7m increase in operating expenses and said that it is committed to minimising costs “given the tougher trading environment”. However, it also added that it will continue to invest its main warehousing and blending site in Airdie, along with its distilleries at Pulteney, Speyburn, Knockdhu, Balblair and Balmenach, as it seeks to drive export growth.

The distiller said: “The business remains focused on the long term global success of its brands, especially its single malts, with sustained investment in stocks for future sales, marketing and promotion.”

It also outlined a commitment to improving energy efficiencies across its sites and utilising green technology.

A dividend of 19.5p per share was paid during the period, down from 20.5p in the year to September 2017.

Managing director Martin Leonard said: “With trading conditions challenging in many emerging markets, it was encouraging to see sales of our single malts grow significantly in the period.

“This is the result of having consistently invested in our people, in production at our distilleries, in the quality of our spirits and in their sales and promotion.

“We also now have the channels in place to grow our brands in markets around the world, so our focus is very much on rolling out some exciting plans and building further success in 2019 and beyond.”