10th Sep 2024 11:56
(Alliance News) - Artisanal Spirits Co PLC on Tuesday said it has narrowed its loss in its half-year results, as it begins to expand its international profile into new Asian markets.
Artisanal is an Edinburgh, Scotland-based distiller of single-cask and limited-edition whiskies and owner of the Scotch Malt Whisky Society.
The company reported a pretax loss of GBP3.1 million for the six months ended June 30, narrowing from GBP3.5 million at the same time last year. Revenue fell 1.0% to GBP10.1 million from GBP10.2 million last year.
The board remains "confident" that Artisanal will deliver on market expectations. No dividend was declared or paid.
Artisanal launched in Taiwan and Korea during this six month period, in an effort to manage its industry and economic headwinds by further diversifying its revenue. This delivered growth to partially offset a 30% decline in China caused by weakened economic conditions.
It also reported its recent acquisition, Single Cask Nation, had integrated well and was "performing to expectation". Single Cask Nation is a US-based membership society that sources, curates and bottles single-cask whiskies and other spirits for its following of more than 10,000 whisky enthusiasts in the US, as well as through retail and distribution channels in the UK, Germany, Sweden, Japan, Israel and Canada.
The second half of Artisanal's financial 2024 is due to involve the installation of a new ePos system within members' rooms, which will deliver an improved member experience within its venues in Edinburgh, Glasgow and London. Further international expansion is also planned, alongside two new Scotch Malt Whisky distillery releases and a refresh of the company's product range to reflect current consumer trends.
Chief Executive Officer Andrew Dane said: "Our proven strategy of investing in whisky stock has built an impressive inventory to satisfy our requirements well into the next decade, as well as delivering a significant uplift in value creation, with the current cask value of just over GBP100 million. Correspondingly, the group now only needs to acquire stock on a replenishment basis, thereby significantly improving the future cash profile of the business.
"We enter the second half of 2024 with a clear strategy, a focus on delivery of the key drivers of profitability in the year across cask sales and US shipments and remain confident of meeting financial 2024 [earnings before interest, taxation, depreciation and amortisation] expectations."
Shares in Artisanal Spirits were untraded on Tuesday, last quoted at 44.55 pence each in London.
By Emily Parsons, Alliance News reporter
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