Scotch Malt Whisky Society owner hit by China downturn
Scotch whisky business Artisanal Spirits Company said it was “disappointed” in its growth for the year to December.
The alcohol firm generated a loss before tax of £3.6m, which it said reflected “increased interest costs, depreciation of our new supply chain facility and below expectation results in some markets such as China”.
Mark Hunter, chair of the board said: “This (issue) resulted in the group resetting its growth and revenue targets for 2024 and beyond, with the delivery of the long-term plan set out at IPO being delayed by a year.”
Revenue was up eight per cent to £23.5m, which was slightly ahead of the board expectations. However, adjusted EBITDA slipped to £0.1m down from £0.4m the previous year.
Artisanal Spirits Company, which floated on the London market three years ago, said despite a slowdown its membership grew by 10 per cent to 41,000.
The business is best known for its Scotch Malt Whisky Society, a membership service which gives members access to outturns of the liquor and access to member rooms and tastings.
Earlier this year, the premium whiskey group also entered into an agreement to acquire US based Single Cask Nation. as it looks to grow its presence in America.
Andrew Dane, chief of the Artisanal Spirits Company, said: “Despite the globally challenging economic environment in 2023, the group emerged stronger, more resilient and increasingly well positioned for continued growth.“
“We remain confident in this US market opportunity, with the very strong finish to 2023 for in-market depletions for SMWSA, continuing with double digit growth in early 2024.”