Edrington reports profit decline as whisky sales face market challenges

Scottish whisky producer Edrington recently released its financial report, showing a double-digit decline in core revenue and profits, highlighting weakened global demand for spirits. In the fiscal year ending March 31, 2025, the company's core revenue dropped by 10%, mainly due to rising production costs and a sluggish global economy. Despite this, brands like The Macallan saw growth in China for its 12, 15, and 18-year-old aged series, while Brugal rum performed strongly in the Dominican Republic and The Macallan in South Korea and Japan.

Facing market challenges, Edrington CEO Scott McCroskie stated the company will continue focusing on its ultra-premium spirits strategy, including strengthening sherry cask supply chains and reducing carbon footprints. The company has adjusted brand investments to align with declining revenue but maintains a 24% reinvestment ratio of core income.

Notably, Edrington sold The Famous Grouse and Naked Malt brands to William Grant & Sons on July 1, aiming to concentrate resources on the premium market, particularly its flagship brand The Macallan. The brand celebrated its 200th anniversary last year and achieved its second-highest sales record in 2024.

McCroskie noted that current political and economic volatility will continue to impact consumer confidence, making revenue growth challenging next year. However, by adjusting operational costs and brand investments, the company aims to balance net sales and core contributions. Edrington emphasized that its ultra-premium product strategy remains effective and will continue to strengthen long-term brand competitiveness while balancing the interests of investors, employees, and charitable beneficiaries.

2025-07-07

Source - https-//www.thedrinksbusiness.com/2025/07/edrington-profits-drop-amid-fall-in-whisky-sales/