Elgin whisky firm Gordon & MacPhail has seen its profits plunge by more than £13 million in its latest accounts.
The brand claims the figures are reflective of a “return to normalised levels of profits”.
It posted pre-tax profits of £4.3m for the year ending February 29 2024, compared to £17.4m in the previous year.
Chief executive Phillip White believes there is plenty to be positive about and said it’s clear to see why figures aren’t comparable to the “exceptional year” before.
Gordon & MacPhail also reaffirmed its commitment to” investment, innovation and long-term growth”.
‘Return to normal profit levels’
Turnover also dropped for the Elgin whisky maker, with sales totalling £34.4m, down from £46.5m.
Mr White believes the firm proved its resilience with two “big reasons” behind the financial drop.
He said: “There was a couple of big reasons behind the drop from the previous year, which was very strong.
“First of all, there was a bit of a post-pandemic high for spending in the whisky market and we benefitted from that.
“We also released an 80-year-old whisky in that year – I believe one bottle went for more than £100,000.”
Mr White admitted the latest profit figures weren’t what Gordon & MacPhail expected.
He added: “While both turnover and profit are down, it’s a return to normal profit levels.
“It wasn’t what we expected, the first half of the year went to plan but the second half was a bit tough.
“Decades of no interest and now going up to 4-5% worldwide – it really changed how people felt about whisky.
“Going forward, we’re quietly confident – it won’t return to our 2023 results – but we don’t anticipate profits dropping.”
At the end of the financial year, Ewen Mackintosh retired following a 33-year career at Gordon & MacPhail, the last decade of which he spent as managing director.
Gordon & MacPhail Elgin and Forres investments
Mr White said building its brands will be the biggest focus of the whisky maker as it looks to enter more worldwide markets.
He said: “Benromach is steadily building and we’re looking at more worldwide markets for Gordon & MacPhail whisky.
“We’re also laying down stock for The Cairn Distillery with a primary plan of launching in a decade’s time.”
Mr White also said it will continue to invest in Moray, with a £3.5m Forres warehouse under way and its Elgin South Street development set to be completed next year.
He added: “We’re on track to finish our South Street site next year but it has been a challenge.
“It is a 130-year-old building and every time we move a stone, we discover something else needs fixed.
“We will finish it and we’re committed to continuing investment in Elgin and Moray, that’s home to us.”
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