Edrington hails “strong” pandemic recovery in GTR, confirms Russia exit

By Kristiane Sherry |

Edrington’s FY22-23 financial results have crossed the £1 billion mark for the first time.

The Macallan parent Edrington has reported “recovery above pre-pandemic levels” in global travel retail, as total company revenues climbed 22% to hit £1,082.4 million in its 2022-23 financial year.

It marks the first time the drinks group, which also owns Highland Park, Glenrothes and The Famous Grouse whiskies as well as Brugal Rum and No.3 Gin, saw its annual sales pass the £1 billion mark.

Profits before tax soared 43% to reach £387.7m, while investment in brands increased by 28% to £232.5m.

In its financial statement, the business also confirmed it fully exited the Russian market in July 2022 following the country’s invasion of Ukraine. 

Sales increasing over volumes

The Macallan, considered Edrington’s flagship brand, “continued to lead” the company’s performance with high demand for The Macallan James Bond Collection, The Red Collection, and The Macallan M series.

Its “most notable” regions for growth included global travel retail and North Asia. 

The Glenrothes, Highland Park and Naked Malt grew value sales ahead of volumes, Edrington said. 

Blended Scotch The Famous Grouse “performed well” in its northern and eastern European core markets. “Good recovery” noted in GTR, especially across Europe. 

Brugal generated “outstanding growth” in its native Dominican Republic, and in Spain. 

2023 M&A activity

The financial year was a busy one in terms of corporate activity, with Edrington taking a 50% stake in Grupo Estévez of Jerez, which supplies its sherry wines for cask seasoning. 

The Macallan M was identified as a leading release.

Edrington also became the majority shareholder in Wyoming Whiskey

People appointments include Igor Boyadjian, who took the role of The Macallan Managing Director, and Suntory Holding’s Kengo Torii, who joined the Edrington Board. 

The company added that it met its independently verified carbon reduction targets as it moves to become a new-zero business by 2045. 

It also highlighted its new corporate brand identity, said to be inspired by its “people, values and heritage”. 

‘Industry leading’ investments

“Our business has delivered another highly successful year, despite a range of external challenges,” said Scott McCroskie, Edrington Chief Executive.

“Revenue from our spirit brands passed £1 billion for the first time and core contribution increased by 25% from last year’s record result.

“This strong trading performance has allowed us to invest industry-leading sums behind our brands, our people and our operations, as well as funding a substantial buyback of shares.

Edrington’s McCroskie says he expects the financial landscape to remain challenging.

 “The business delivered a strong performance in almost every country where our products are sold, with particularly strong sales in China, Hong Kong, Taiwan, the UK, Spain, the Dominican Republic and the USA.

“Whilst the economic landscape will continue to be challenging, the trading environment is improving. We have healthy brands, an effective strategy, record levels of investment in the business, great people and strong momentum.

“I am confident that Edrington is well-positioned to deliver sustainable success in the future.”

Earlier this year, Edrington launched its new travel retail exclusive Colour Collection at an event in Singapore.

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