Locals buying less rum: Angostura's profits drop

A DECLINE in sales in the local standard rums segment has resulted in an overall decline in profits for Angostura, according to its limited summary consolidated financial statement for the year ending September 2024.

The company reported $94.3 million in profits after tax for the year, as compared to $104.4 million the year before.

This year, Angostura garnered $697.9 million in revenue as compared to $720.1 million the year before. It reported a profit before tax of $126.5 million, as compared to $149.1 million the year before.

“The standard rums segment declined during the first nine months of 2024, contributing to an overall decrease of $35 million or eight per cent in the local market when compared to the same period in the prior year,” Angostura chairman Terrence Bharath said in his report.

He said there were positive trends in the market, with premium rums increasing by nine per cent, and bitters sales by ten per cent.

Angostura saw notable success in international markets, the report said.

“Angostura Holdings Ltd’s international markets, regional markets, duty-free segment and bulk and co-packing segments collectively increased by $12.8 million or four per cent over the prior period,” Bharath said.

He said international and regional markets’ revenues increased by three per cent or $7.4 million, fuelled by a 28 per cent increase in sales of bitters in Australia, 18 per cent in Latin America and one per cent in North America.

Angostura Chill continued to expand regionally, achieving a 31 per cent growth in revenue year-on-year.

There was also an increase in the company’s duty-free segments, with a recorded growth in premium rums by 31 per cent.

Bulk and co-packing segments of the company also saw a growth of $5.4 million or 23 per cent, year-on-year.

To address the reduction in local sales, Angostura has introduced new products into the local market, including, in July, the new Correia’s range of rums, which features Hard Rum, Coconut Flavoured Rum and Real Hard Puncheon. Angostura also introduced a new flavour of Angostura Chill.

The group also implemented measures to ensure there were no increases in total operating expenses. As a result the company saw a reduction in operating expenses by $13.3 million, or six per cent.