Morrison Bowmore Profits Up Despite Downturn

[John]

Distiller Morrison Bowmore, maker of the single malts Bowmore, Auchentoshan and Glen Garioch, posted improved profits in 2008 despite a decrease in turnover.

This emerged in its latest annual report and accounts released yesterday by Companies House.

The directors said the fall in turnover reflected reduced activity in the bulk whisky market in line with their strategy of moving away from low-margin bulk and blend business. They said the company continued to concentrate on building its single malt whisky brands and increased its investment in Bowmore distilled on Islay and Auchentoshan distilled near Glasgow.

Glen Garioch is distilled at Oldmeldrum.

The directors said the improvement in profits was generated by the performance of single malt brands, with both Bowmore and Auchentoshan making significant contributions to the improvement.

The report noted that the investment behind growing single malt brands extends to the need to lay down additional stocks for sale in 12 years' time, but despite a substantial increase in stock borrowings were held flat at just under £28million.

Directors also report that, in March this year, Glasgow-based Morrison Bowmore announced an agreement with Drambuie Liqueur Company under which it is to provide Drambuie with supply chain services.

These cover whisky procurement, blending and bottling, warehousing and logistics, and the agreement will come into effect early next year.

The directors say this will double the size of Morrison Bowmore's bottling output.

The accounts show that the company, whose ultimate parent is Japanese drinks giant Suntory, made pre- tax profits in 2008 of £3.56million compared to £3.16million the year before.

Profits per each of its 177 employees improved to £20,000 from £18,000.

Turnover for the year was £37.11million, down from £39.66million in 2007.

John

Source: Press & Journal