The main highlights of the announcement are:
- 31% increase in revenue to £57.4m (2010: £43.9m)
- Gross profit £23.2m (2010: £18.3m)
- Operating profit £6.9m (2010: £4.6m)
- Core branded sales growth of 13% in volume and 27% in revenue
- Continued investment in infrastructure and brands
The company, which employs 250 people across its distilling, blending, bottling, commercial and administration activities, has implemented long-term strategies of investment in the value of its core brands and relationship building in niche markets.
Sales growth across the core brands is up 13% in volume and 27% in revenue with Scottish Leader driving the growth in the blends and Bunnahabhain leading the single malt growth.
The company continues to invest in capital expenditure to a total of £0.8m in 2011 taking the investment for the last 3 years to £2.0m. Current investment includes completion of a £0.6m visitor centre at Deanston Distillery in Doune, which opened in June 2012, creating 7 new jobs and significantly enhancing the retail and consumer experience of the brand.
As the company relentlessly continues to drive its core branded portfolio, a £0.5m investment in a new high specification bottling line is currently underway at East Kilbride which will improve delivery of Burn Stewart's Single Malt brand strategy.
One of the company's most important export markets is Taiwan, where Burn Stewart first traded in 1993, opening its branch two years later, which now employs 35 people. The company's flagship brand, Scottish Leader, has recently become the market leader in Taiwan in the "standard blended Scotch'' category.
Growth is also strong in Sub-Saharan Africa, the UK, and the US, France, the Baltics and parts of Eastern Europe. In all regions the company has nurtured long-term partnerships and focus in specific channels of trade.
Commenting on the results: Fraser Thornton, Managing Director of Burn Stewart said: "I am pleased that our results clearly demonstrate our ability to deliver our long-term strategy combining capital expenditure on value adding projects and relationship building in niche markets. We have confidence in the Scotch whisky sector, our brands and the ability of our people to produce and market them. The company plans further investment in capital projects over the next 3 years to further enhance the capability of the business and its competitiveness.
"Our strength lies in understanding our markets and recognising the opportunities that are right for us. Both internationally and in the UK, our efforts to foster long-term supply, retail and distribution partnerships have contributed to our growth and in the future, all of our brands will benefit greatly from our established relationships and global distributor network."
Andrew Mitchell, Chairman of Burn Stewart further commented:
'The dedication and hard work of all the staff has undoubtedly contributed to these results and I thank and congratulate them all.'
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