THE Macallan Distillers has lifted pre-tax profits by six per cent to £111.7 million thanks to income generated by its new Asia-Pacific sales and marketing hub and strong sales in the US.
Speyside-based Macallan, a subsidiary of The Edrington Group, received investment income of £19m from the Singapore-based operation in the year ended March 31.
However, the move to relocate marketing, brand development and commercial functions to the hub caused turnover and operating profit to fall.
Accounts newly-filed at Companies House show turnover at The Macallan Distillers dipped to £149.5m from £172.7m, with operating profit down to £92.5m from £104.9m the year before.
Writing in the accounts, the directors said the creation of the Asia-Pacific hub had brought it closer to its customers in the region, allowing it to become “more agile to the needs of its markets.”
The Macallan’s duty free operations in the region are also now handled by the Singapore hub.
Mulling the global outlook for the luxury Speyside malt, the directors said its performance across Asia Pacific had been in line with the prior year – in spite of government legislation affecting consumption in China.
The distiller expects its momentum in the region to remain “robust” on the back of economic growth forecasts of 5.6 per cent for the 10 ASEAN (Association of Southeast Asian Nations) countries between 2015 and 2019.
The Macallan saw “double digit profit growth” across the Atlantic in the first full year of trading of Edrington USA, the distiller’s in-house distribution hub for the key American market.
And the directors noted it had been another year of growth for its travel retail business, in spite of “geopolitical and macroeconomic issues, including currency fluctuations for the Rouble, anti-gifting legislation in China and an increase in pricing pressure.”
Meanwhile, the £100m project to build a new distillery and “brand home” for The Macallan is “progressing well”, the accounts state.
Edrington, led by chief executive Ian Curle, recorded a £52.7m loss after booking a near £239m impairment charge on Brugal rum in its most recent accounts. The Glasgow-based distiller said its core whisky brands, which include The Famous Grouse, had performed well.
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