• Text size      
  • Send this article to a friend
  • Print this article

Chivas pays out £90m dividends

FRENCH-owned Scotch whisky producer Chivas Brothers paid dividends of more than £90 million to its parent company in its last financial year, its annual accounts have revealed.

On January 3, 2013 Chivas paid a £56.8m dividend to its immediate parent Acorn. It followed this up with monthly dividends totalling £34.3m over the remainder of the financial year to June 30.

In the 2012 financial year, it had paid out £23.6m of dividends.

The move came after a restructuring of Pernod Ricard's operations in Scotland, which saw Chivas acquire the trade, assets and liabilities of sister company Allied Domecq Spirits and Wine.

Under the deal, Chivas - home to the group's flagship Scotch whisky brand Chivas Regal - is paying Allied Domecq to use brands such as Ballantine's Finest, Ballantine's Aged Range and Beefeater Gin.

The royalty payments contributed to a rise in administration expenses to £205m for the 2013 financial year, up from £95m during 2012.

Chivas also received a £200m dividend from Allied Domecq in November 2012

The restructuring comes nine years after Pernod Ricard and Fortune Brands acquired Allied Domecq in a £7.4bn deal and divided up the business.

Chivas's directors said its results for the year were in line with expectations.

A 62% rise in turnover to £988.6m, and an increase in pre-tax profit to £500m, from £201.9m in 2012, were ascribed to the transaction with Allied Domecq.

The board of Chivas Brothers said: "The directors are satisfied with the current trading performance of the company.

"They remain optimistic for the future having considered market forecasts and social tends.

Chivas ploughed £60.5m into its pension scheme in a one-off payment taking its contributions to £72.2m for the year.

It expects to contribute £9.4m in the current financial year.

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.