The company said “the tough global economic conditions made 2012 a challenging year, with consumer confidence in Europe in particular remaining low”.
Annual turnover rose by 1.4% to £1.06bn, while group operating profit fell slightly from £126.3M in 2011 to £124.8M in 2012.
However, the firm attributed the profit hit to the cost of investing in its core brands and global infrastructure in order to target long-term development.
Investment in production capacity
It said capital spend had increased in 2012 as a result of additional investment in production capacity, the replacement of the group’s enterprise resource planning system and upgrades to Glenfiddich and Tullamore Dew visitor centres.
In addition, turnover of its core brands had increased by 7% year-on-year, said the drinks business.
It upgraded packaging for its Tullamore Dew Irish Whiskey brand last year and celebrated the 125th anniversary of the opening of the Glenfiddich distillery in Dufftown, Scotland.
The company also commemorated the life of Janet Roberts, granddaughter of its founder who died in 2012, by launching 11 exclusive packs. Sale of the packs raised £400,000 for charities across the world.
Rapid growth
The distiller reported that its The Balvenie single malt Scotch whisky and Hendrick’s gin brands continued to show rapid growth last year. It also launched its first TV advertising campaign for its Sailor Jerry spiced rum.
In addition, it had invested in innovation brands, such as Monkey Shoulder, Reyka Vodka, Solerno Blood Orange Liqueur and premium tequila label Milagro, it said.
“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,” commented William Grant & Sons chief executive Stella David.