• FY net profits before tax and exceptionals down 10% to GBP157.6m (US$247.9m)
  • Net sales down 2.4% to GBP617.1m
  • Operating profits (EBIT) down 8% to GBP181.1m
  • Volumes down 5% to 8.72m cases
  • Brugal has GBP239m write-down
Edringtons FY results included a GBP239m write-down for Brugal

Edrington's FY results included a GBP239m write-down for Brugal

Edrington has posted a drop in full-year profits after its second write-down in three years for its Brugal rum brand.

Net profits before tax and exceptionals were down 10% to GBP157.6m (US$247.9m) in the 12 months to the end of March, the Scottish spirits producer said today. Net sales dipped by 2.4% to GBP617.1m in the same period, while operating profits (EBIT) dropped by 8% to GBP181.1m.

For a closer look at Edrington's full-year performance by brand, click here

The GBP239m Brugal write-down follows a GBP274.8m write-down in fiscal 2012/13 and was blamed on a fall in volumes across the brand's key markets of the Dominican Republic and Spain. Edrington said the rum categories in the countries were down 13% and 7% respectively, while in the Dominican Republic demand was challenged by "both legitimate competition and from low-price tax free spirits".

"The team at Brugal is working closely with trade associations and the local government to seek to tighten processes to tackle tax evasion and secure a more level playing field for its home market," Edrington added.

Edrington acquired a majority stake in Dominican Republic-based The Brugal Company in 2008.

Meanwhile, the company said the sales decrease was down to a drop in demand for non-branded products. Edrington's own brands, which include The Macallan and Famous Grouse, were up 1.8% in sales for the fiscal year.

On an underlying basis, and discounting non-Edrington brands, EBIT was up 4.6%, which the company said it felt "properly reflects the core strength of the business".

The company is still setting up a new global distribution network first revealed in 2012. This month, Edrington made a number of senior appointments including that of Christopher Spalding, who was promoted to the newly-created role of senior vice president & commercial director - North America.