Profits dipped at spirit-maker and distiller William Grant & Sons last year as the group prioritised long-term investment in a weak market.
But the family firm behind Glenfiddich and a string of other top labels rode the storm to post a record turnover, topping £1 billion for the second year in a row and helped by the generous margins available through its premium products.
Total 2012 sales of £1.06bn marked an increase of 1.4% on the previous year. Success with the likes of Grants, the Balvenie and Hendrick’s Gin saw the firm’s core stable of brands increase revenues by 7% year-on-year.
But profits were subdued by the company’s continued efforts to strengthen its offer.
Operating returns fell by just above 1% to £124.8 million in the year, down from £126.3m in the previous period.
“Whilst the tough global economic conditions made 2012 a challenging year, with consumer confidence in Europe in particular remaining low, the company continued to strengthen its business by investing in core brands and global infrastructure for the long term, which explains the slight reduction in profits,” said a company statement.
It said capital expenditure had also increased during the 12 months, with production capacity boosted, IT systems replaced and visitors’ centres at Glenfiddich and Tullamore upgraded.
Chief executive Stella David said William Grant & Sons had “continued to perform”.
“Whilst 2012 saw some difficult global economic conditions, the company continued to perform well thanks to the continued success of our premium spirits brands and our consistent focus on building brand equity and investing for the long-term,” she said.
William Grant also hailed a string of highlights, including the 125-year anniversary of the opening of the Glenfiddich distillery at Dufftown last year.
The rapidly-expanding Balvenie single malt brand launched its ultra-premium 50-year-old expression, which has a recommended selling price of £20,000 a bottle.
Top-end gin Hendricks continues to lead its market segment, while Sailor Jerry spice rum and Grant’s also fared well. Meanwhile, the group also continues to invest in new labels like Monkey Shoulder, Reyka Vodka, Solerno Blood Orange Liqueur and premium tequila brand Milagro.
The brand also developed 11 exclusive packs designed to celebrate the life of Janet Sheet Roberts, the grand-daughter of company founder William Grant, who died last year. Their sale generated more than £400,000 for charities worldwide.