Glasgow-based drinks company Edrington said revenues for the year to March 31 were flat at £574.6 million amid a “challenging environment” where results were hit by “political and economic volatility, tough trading conditions in the mature markets of the UK and Taiwan, and the influence of currency exchange rates in emerging markets.”
Edrington — owner of The Macallan, Highland Park and Famous Grouse — said its core earnings, excluding effects of currency and trade sales, increased slightly to £155.9 million from £154.5 million.
Profit for the year fell to £72.7 million from £79.7 million.
“Given the strong performance by our brands in key markets, we remain confident about the company’s medium and long term prospects, and will continue to invest and innovate to drive growth across our international business,” said the privately held company in a statement.
The firm said The Macallan delivered another strong year despite a setback in Taiwan, “where intense competitive activity dented volume and market share.”
However The Macallan performed particularly strongly in China, Russia and the USA, “where it is now the number one brand by value in the single malt category.”
Highland Park “continued to show good momentum across its major markets in Europe, the USA and Canada, delivering increased value.”
The Famous Grouse maintained its leading position as the UK’s favourite Scotch “in the face of intense competitive pressure that reduced volumes” and grew in Spain and the USA.
Ian Curle, chief executive of Edrington, said: “A year on from the launch of Edrington’s new strategy, we see evidence that we have put the right strategy into effect, and that it is delivering results.
“During this year of transition we have faced challenging economic and trading conditions with strong performances in key markets and shortfalls in others. In combination with the influence of currency, this has adversely affected our results.
“Recent investment in distribution is showing benefits with the USA, Global Travel Retail and South East Asia delivering double figure growth.
“Edrington will continue to invest in its brands and in growing markets for premium spirits.
“Our new distillery and brand home for The Macallan is taking shape in Speyside, and we look forward to welcoming visitors in spring 2018.”