Company Snapshot: Old Bushmills Distillery Co. Ltd.
Whiskey firm is still growing
Old Bushmills Distillery is engaged in distilling, maturation, blending, marketing and selling of Irish whiskey. The company, based in Bushmills village, is a wholly owned subsidiary of the Diageo Group.
Old Bushmills has reported an exceptionally successful year. The company sells the largest proportion of its production through meeting the demands of other subsidiaries in the Diageo group. The annual report suggests that the turnover rise is largely due to their increased demand.
Turnover in 2011-12 rose by just over 30%. In a simple analysis of the source of turnover, just over £9.3m was attributed to production, maturation and packaging. The larger part of turnover, £42.9m, was attributed to marketing and selling the products.
In 2011-12 there has been an increase in production alongside an increase in capital expenditure, although the rate of capital spending was lower than in some earlier years. Capital spending peaked at £8.7m in 2008-9 but remained high by historic standards in the following years and reached £6.7m in 2011-12.
Although the internal accounting procedures within Diageo affect the Old Bushmills subsidiary, the attributed operating and pre-tax profits for 2011-12 reflect a substantial improvement. For comparison, the trading results for 2008-9 showed both operating and pre-tax profits having fallen to unusually low levels. Operating profit in 2011-12 is over four times larger than 2008-9.
In 2010-11 operating profits were unusually high, at 37% of turnover, and this ratio was only slightly lower in 2011-12.