Macallan maker warns of 'adversely affected' demand

Edrington has reported a 6% rise in pre-tax profits to £411m and an 11% rise in revenue to £1.16bn.

However, the whisky producer's results for the year to 31 March 2024 also stated that it is expecting lower levels of growth than have been experienced since the end of the pandemic.

A focus on "ultra-premium products" continues to underpin performance and the business "demonstrated robust growth despite a global reduction in consumer spending in the second half of the financial year".

Net sales, brand investment and core contribution all grew by double-digits during the year.

Edrington increased its investments in the supply chain that provides Sherry-seasoned oak casks for The Macallan through the acquisition of the Vasyma cooperage business based in Jerez, along with a 50% stake in its main supplier of American oak, Coopers Oak of Ohio.

The Macallan continues to lead the group's growth, with brand collaborations during the period coming from Bentley Motors and also alongside Stella and Mary McCartney.

Markets in Asia Pacific showed "strong growth", with China performing particularly well. The Macallan Colour Collection has generated "outstanding early results" in global travel retail.

Chief executive Scott McCroskie: "Edrington has navigated a challenging year to deliver financial results that are among the best in the spirits industry.

"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 is headquartered in Scotland and employs more than 3,300 people in its wholly-owned and joint venture companies, with more than half employed outside the UK.

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