Scottish distiller Edrington has blamed global conflicts and the “rising tide” of government imposed costs and regulation for a slump in annual profit.
The Glasgow-based producer of The Macallan, Highland Park and London Dry Gin posted a 7% fall in pre-exceptional pre-tax profits to £256.1 million for the year to the end of March 2026 (2025: £274.4m).
Excluding exceptionals, PTP fell 24% to £199.6m from £257.7m. EBIT was down 10% to £283.1m against £315.8m in the prior year. Revenue fell 14% to £922.3m from £1.07 billion.
The proceeds of the sale of The Famous Grouse, alongside working capital savings, enabled a £425m reduction in net debt.
The 7% fall in pre-exceptional profit reflected the absence of a one-off gain in the prior year from a sale of maturing stock, together with the impact of adverse currency rates.
Chairman Angus Cockburn said: “The past 12 months have been demanding for spirits producers worldwide, and Edrington has faced the same headwinds as our peers.
“In that context, it was encouraging to see the business stabilise after a difficult prior year and deliver a resilient performance.
“The turbulence we have faced has been caused in large part by weakened consumer confidence, driven by ongoing conflicts that are further impacting the high cost of living.
“This is exacerbated by a rising tide of increasing government regulation, rising taxation, and the high cost of doing business, especially in our home market of the UK.”
He added: “Trade policy continues to impact our performance, particularly in the United States, where tariffs were reintroduced during the year – although we are encouraged by recent news that we are set to return to tariff free trade with our largest global market.
“We welcome progress towards improved market access in key regions, including China, where tariffs were halved, and through the free trade agreement between the UK and India. Over time, such developments have the potential to support the growth of our ultra premium portfolio.
“Closer to home, continued support from the UK and Scottish governments in reducing the burden of regulation and taxation would help sustain the iconic Scotch Whisky industry.
“Action by the UK Government to address energy costs and to deliver trade deals in new and emerging markets would be particularly welcome.”
Scott McCroskie, CEO of Edrington said: “Our performance this year reflects both the strength of our brands and a disciplined approach to execution in a challenging market.
“Whilst consumer demand at the very top end of our products remains subdued, the continued growth of our core ranges has enabled us to deliver a modest increase in core contribution.
“Our leading brand, The Macallan, has continued to perform strongly, gaining market share across a number of our key markets.
“With the company’s balance sheet strengthened by strong inventory management and materially reduced debt, Edrington is on a strong footing as it navigates a continually volatile environment.
“We will continue to pursue growth opportunities whilst maintaining discipline over costs and investing in our brands, our operations and sustainability. This will ensure that the business is well placed to perform strongly in the future.”
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