UK: Drambuie beats euro woes to post strong FY results
- Net profits jump by 84% to GBP2.8m (US$4.5m)
- Net sales increase by 4.5%% to GBP22.9m
- Operating profits up by 29% to GBP3.6m
- Group volumes level on back of 27% Greek decline
Drambuie announced its full-year results today (14 September)
Whisky liqueur maker Drambuie has posted strong full-year profits driven by price hikes and the UK launch of its first new product in a decade.
Net profits jumped by 84% to GBP2.8m (US$4.5m) in the 12 months to the end of June, the Glasgow-based company said today (14 September). Net sales increased by 4.5% to GBP22.9m over the same period while operating profits climbed by 29%.
Net and operating profits benefited from a weak comparison in 2011, when severance costs added GBP311,000 to the year's exceptional items. The results were also boosted by a positive foreign exchange impact.
Volumes this year remained flat. Drambuie blamed the euro zone crisis for depressing demand in Southern Europe and for a 27% drop in volumes in Greece.
“The company has made good progress over the last few years as we rebuild the brand,” said Drambuie CEO Michael Kennedy. “The team expects to continue this progress in the forthcoming year, providing the current global turmoil does not further damage trading conditions across Drambuie’s key markets.”
Drambuie said the sales rise was driven by price rises and Drambuie 15, which was launched in the UK last year and in the US a few months later. Brand Drambuie and Drambuie 15 were launched in India and South-East Asia this year.
The company said Drambuie 15 has had a “positive impact” on Global Travel Retail sales and was outselling brand Drambuie in Heathrow, Gatwick and Edinburgh airports. It also found 12% sales growth in Dubai, the world's biggest travel retail airport, Drambuie said.
Brand Drambuie depletions in the US, the liqueur’s biggest market, were level for the year, the company said.
Drambuie 15, launched last year, was the company's first new product in the UK for ten years.
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