Scotch distiller toasts record year
Whisky distiller William Grant has reported a record year, with pretax profits surging more than a half on sales that were up by in excess of a fifth.
The firm, based at Dufftown on Speyside, said the best financial performance yet was driven by factors including a positive trading environment for its core brands and an improved mix for spirit sales. Accounts released by Companies House yesterday showed William Grant and Sons made pretax profits of £88.94million last year, against £86.16million in 2007.
Turnover during the latest period was £458.15million, compared with £392.89million previously.
A spokesman for the company, which is now led by former Bacardi marketing officer Stella David, who took over as chief executive from Roland van Bommel this summer, revealed corresponding figures for parent William Grant and Sons Holdings. Pretax profits at the holding company raced ahead 55% to £129.2million, with turnover climbing 21% to £598.3million.
The spokesman said 2009 had been a tougher year but Grant was confident of meeting its expectations for the 12 months.
Grant’s whiskies include Clan MacGregor, Glenfiddich, Grant’s and The Balvenie. Its other brands include Hendrick’s gin, Reyka vodka, Sailor Jerry spiced rum, liqueur Solerno and fruitflavour Taboo mixers.
The familyowned firm, established in 1887, said in its annual accounts that it continued to develop its core brands during 2008.
Overall cased volumes increased, which was attributed to a strong performance by the Grant’s Family Reserve and Clan MacGregor whiskies as well as Hendrick’s, Sailor Jerry and Milagro tequila, in which the firm has a 51% stake.
Grant added: "Glenfiddich and The Balvenie Scotch whiskies remained level, with value being emphasised ahead of volume." The firm said its Glenfiddich, Balvemie and Kininvie distilleries at Dufftown, along with grain and malt whisky operations at Girvan, Ayrshire, "met all distilling targets efficiently."
Grant, which last year employed 704 people on average, expected competition to intensify during 2009 following a slowdown in industry exports in a deteriorating economic climate in 2008.
It added: "The company will need to strengthen its efforts to maintain a strong cash flow in order to widen the portfolio."
Original source : Keith Findlay
