14th Sep 2022 11:51
(Alliance News) - Artisanal Spirits Co PLC on Wednesday reported increased interim revenue as membership of its flagship Scotch Malt Whisky Society rose, but loss widened.
The Edinburgh, Scotland-based distiller of single-cask and limited-edition whiskies reported a pretax loss of GBP1.1 million in the six months to June 30, a slight deterioration from the GBP941,000 loss posted in the same period last year.
This was partially the result of a 19% increase in administrative expenses and 18% increase in selling & distribution expenses, the firm said. Removal of other income such as government grants which it received in the first half of 2021 also played a role.
Despite the widened loss, revenue increased by 25% to GBP9.9 million from GBP7.9 million. Trading in the early weeks of the second half of the year was "positive".
Artisanal reported a 24% increase in membership for its Scottish Malt Whisky Society with every area of the world reporting increases. This included a 33% increase in "Europe", a 31% increase in the UK and a 28% increase in Australia. Membership of the society is a leading indicator of future revenue growth, the company explained. Artisanal's Europe market consists of continental Europe excluding franchise markets in Denmark and Switzerland.
Net debt stood at GBP8.2 million, a large increase on the GBP1.9 million reported in June 2021. This reflects investment in "spirit and wood" and the new Masterton Bond supply chain facility, near Glasgow.
Looking ahead, the company said it remained on track to deliver a doubling of revenue from 2020 to 2024.
Managing Director David Ridley said: "We continue to benefit from structural tailwinds as premiumisation, digitalisation, experience and convenience combine to accelerate the appeal of our proposition to our expanding global membership base."
"Our opportunity remains compelling, exciting and highly relevant for today's marketplace. Furthermore, and as evidenced by the continued growth by many of the global spirits majors, whisky continues to demonstrate its strong and enduring credentials. Artisanal Spirit Company's unique portfolio of curated, limited edition whisky benefits from natural price elasticity which, in turn, provides strong gross margin appreciation and a natural inflation hedge."
Shares in the Artisanal Spirit Company were trading 0.5% higher at 74.38 pence each in London on Wednesday morning.
By Chris Dorrell; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Artisanal Sp.co