Key Financial Highlights

Core Revenue

Total revenue from our sales of continuing Edrington branded products on a constant currency basis.

Analysis
The growth in core revenue was faster than the 2% volume growth, reflecting the increased premiumisation of our portfolio and the benefits of both product mix and price increases.

Brand Investment

Advertising and promotional expenditure on our core brands, excluding discounts on a constant currency basis.

Analysis
This year on year increase is reflective of our strategy to invest for long-term growth and grow our brand equity. The Macallan, in particular, continued to benefit from this increased level of investment in the year with an increase of 8%.

Core Contribution

Profit from our branded sales and distribution adjusted for the impact of foreign currency and after the deduction of overheads.

Analysis
Core contribution is the key measure of the underlying performance of the business and the increase in the year represents strong growth from our malt brands and Brugal. Our growth in contribution is lower than our core revenue as we continue to invest in enhanced packaging and capabilities.

Earnings Before Interest and Tax* (EBIT)

EBIT is a measure of the profit generated by the business before the impact of interest, tax, minority interest charges and items deemed to be exceptional in nature.

Analysis
EBIT has grown ahead of core contribution due primarily to the impact of a weaker £ compared to last year.

*Before exceptional items

Free Cash Flow

Net cash flow excluding the movements in borrowings, shares, dividend payments, expansionary capital expenditure and non-cash exceptional items.

Analysis
Free cash flow represents the cash the business generates after maintaining our asset base. The reduction in the year represents an increased investment in casks and maturing stocks for the future growth of our brands.

Profit for Year Attributable to Parent*

Earnings after tax and minority interests excluding exceptional items.

Analysis
Profit for the year has increased by 4%. This is lower than our EBIT growth due to higher interest costs in the year.

*Before exceptional items.

Strategic Inventories

The net book value of our maturing inventories of whisky and rum and the casks in which they are held.

Analysis
The 7% growth in strategic inventories is a result of our continued focus to support the long term growth of our brands.

Net Debt / EBITDA

The ratio of bank and private placement debt at hedged rates, where applicable, after deduction of cash balances to reported earnings before interest, tax, depreciation and amortisation.

Analysis
The 22% improvement in the ratio is driven by both an increase in our EBITDA together with a reduction in our net debt as a result of additional income from the disposal of Cutty Sark and Glenturret brands during the year.