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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.

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