UK: Whyte & Mackay FY profits tumble

• Full-year profits to end of March 2011 slide by 54.5% to GBP10.25m (US$15.9m)
• Net sales fall by 19.8% to GBP169.5m
• Operating profits drop by 51.2% to GBP21.7m

Whyte & Mackay has reported sharp drops in sales and profits for its most recent full-year.

The Scotch whisky distiller, which is owned by India's United Spirits, saw net profits for the 12 months to the end of March fall by 54.5%, to GBP10.25m (US$15.9m). Net sales fell by 51.2% on the prior year, to GBP169.5m, the group said in a filing with Companies House late last month.

The fall reflects United Spirits' strategy to refocus Whyte & Mackay around branded whiskies such as The Dalmore, at the expense of the firm's bulk and private label whisky business.

In a statement, Whyte & Mackay's financial director, Hemanth Menon, said: "As a long-term strategy, Whyte & Mackay's current focus is on growing its branded business and become more international.

Menon said that the group has invested heavily in international infrastructure to help its brands grow. "Whyte & Mackay is conscious of the short-term impact on profits and turnover, but strongly believes the company should be 'brands' led rather than bulk business." 

Over the 12 months, redundancy costs were GBP139,000, versus GBP3m in the previous year. Operating costs slid by 51.2% for the year, to GBP21.7m.