Glengoyne whisky maker suffers worst decline in decades as demand falls
Profit at the group behind spirts such as Glengoyne whisky and Edinburgh Gin has been slashed in half as it suffered the largest decline “in decades”.
Edinburgh-headquartered Ian McLeod Distillers has posted a pre-tax profit of £15.6m for the year to 30 September, 2024.
The total comes after the business achieved a pre-tax profit of £33.8m in the prior 12 months.
New accounts filed with Companies House also show its group turnover was cut from £160.5m to £128.2m.
Along with Glengoyne, Ian McLeod Distillers’ brands also include Rosebank, Smokehead, Tamdhu, Sheep Dip, London Hill, Pig’s Nose, Mash Cut, Raffles, Isle of Skye and Macleod’s.
Glengoyne maker confident for the future
The Glengoyne distiller said: “The reduction in trading in the last year is the first major reversal in performance, excepting the smaller effect of Covid, for decades.
“The group remained in profit and there are signed that the market is levelling out and returning to modest growth.
“This is confidence that the group is well able to adjust to lower trading conditions and with its strong asset base will maintain a strong relative market position.”
On the reduction in its turnover, the group said orders for cased goods “moderated” due to falling demand in export markets, most notably in Asia.
Bulk sales also reduced as demand for single cases from UK-based brokers and traders lessened and fewer casks were available for sale.
It added that the demand for exports of bulk spirit remained level.
The Glengoyne maker added: “Over recent years, the group benefitted from the strong worldwide demand for packaged and bulk single malt Scotch whisky which peaked in 2022 and 2023.
“The group is also well positioned in the UK gin market.
“As well as brand investments, the group invests significantly in operational assets and stock to support current and future growth.”