JAPANESE-owned Scotch whisky distiller Tomatin has posted a 14 per cent rise in annual pre-tax profits on the back of a near-25% jump in turnover, boosted by buoyant exports to the US, Germany and China.
The Tomatin Distillery Company, owned by Kyoto-based group Takara, said yesterday that its pre-tax profits had risen to £4.03 million in the year to December 2017, from £3.53m in 2016.
Its turnover increased from £14.51m in 2016 to £18.09m last year.
Stephen Bremner, managing director of Tomatin, cited the US, Germany and China as particularly strong overseas markets, noting exports made up 66% of total turnover.
Tomatin, on the Speyside border 16 miles south of Inverness, also cited the strength of its sales in the UK market.
Mr Bremner said: “Growth has been driven by investment in the Tomatin brand and the resulting increased customer loyalty.”
He flagged strong growth of sales across the Tomatin single malt product range.
Mr Bremner said: “Demand has grown across the range: 2017 saw our entry level malt, Legacy, grow by 70% but similarly at the other end of the spectrum our 36-year-old…grew by 60%.”
Asked about the outlook, he replied: “The outlook is viewed with much positivity but also with a certain amount of caution. Interest in single malt whisky is very high and we are seeing some very positive signs coming out of Asia.
“Whilst the USA continues to offer opportunities for growth, there is also some uncertainty with this market at the moment.”
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Tomatin, which employs 55 people and has been in its current ownership since 1986, said that annual turnover for the distillery visitor centre had exceeded £1m for the first time.
It said: “Having grown in line with the brand, the visitor centre has become an important revenue stream for the business.”
In addition to its portfolio of core Tomatin products, the distillery also produces Cu Bocan, a lightly peated whisky, and a range of blended whiskies.
Mr Bremner said: “This is a very exciting time for Tomatin. In the past few years, we have gained a solid foothold in the international whisky market, particularly with our branded products.”
He added: “Tomatin is steadily seducing the new wave of whisky drinkers – not just on Scottish soil, but globally.”
In its accounts, Tomatin highlights an expectation that its stock requirements will increase, given its projections for future activity.
It says: “The company continues to match production levels with a view to fulfilling its future stock requirements in a UK and a global market place with continued emphasis on finished goods.
“Stock requirements are expected to steadily increase due to an increase in activity in the future.”
Tomatin, emphasising its focus on brand-building to increase customer loyalty, highlights its “continued step away from reliance on low-margin activities”.
Commenting on the UK’s impending exit from the European Union, Tomatin says it “continues to monitor the Brexit position through its trade organisation, [the] Scotch Whisky Association, with the main risk being the uncertainty in transport costs with foreign customers”.
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It adds: “Such customers do not make up a significant portion of the revenue base and so [this] is not currently a major risk.”
Tomatin’s accounts show directors’ remuneration rose from £255,013 in 2016 to £293,365 last year. The remuneration of the highest-paid director increased from £160,356 to £162,687.
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