Edward Dillon & Co see pre-tax profits fall, despite increase in sales

DRINKS distributor Edward Dillon saw profits fall heavily in its last financial year, according to accounts just filed at the Companies Registration Office.

Pre-tax profits at the Dublin-based company, which is owned by three major international drinks groups, fell by 17% to €6.74 million in the year to end September 2004. Sales for the year were up, though, increasing from €129.5 million to €136m.

No reason was given for the fall in profits, though the company’s cost base did rise during the year.

The directors added in a note to the accounts: “The group and company continued to make progress during the year under review and continued to seek to strengthen and expand the business.”

Last September, Diageo sold its 30% stake in the company to the other shareholders, which include Bacardi, Moët Hennessy and Brown Forman (the maker of Jack Daniels). Hennessy and Bacardi each own 40% of the company with Brown Forman the remainder.

Diageo accounted for around 6% of Edward Dillon sales volumes

Edward Dillon & Co distribute some of the best known wine and spirits brands. These include: Hennessy, Bacardi, Jack Daniels, Wolf Blass, Fetzer, Carmen and Barton & Guestier wines.

During the year the shareholders were paid almost €5m in dividends, down by 1m in the previous year, and a further payout of €2.4m was proposed.

After the dividend payments, the company ended up with a €1.4m loss for the year.