Artisanal Spirits H1 revenue up 25% to £9.9m

Edinburgh-based Artisanal Spirits Company plc (ASC), owner of The Scotch Malt Whisky Society (SMWS), said its revenue increased 25% to £9.9 million in the six months ended June 30, 2022.

Artisanal reported significant growth in UK venues, Europe and China and gross margin of 63%, ahead of the 61% achieved in FY21.

Gross profit increased 21% to £6.2 million, while loss before tax widened slightly to £1.1 million.

Membership of the The Scotch Malt Whisky Society (SMWS) increased by 24% to more than 35,600 in the year to June 30.

“This included robust growth in European members since the launch of the new EU route to market towards the end of FY21,” said Artisanal.

The firm said its stock-in-cask at June 30 had an increased notional retail sales value of £455 million.

Artisanal joined the London Stock Exchange’s junior AIM market in June, 2021, with its shares priced at 112p, giving it a stock market value of £77.96 million.

However, the shares have since fallen to around 75p, giving it a current stock market value of around £52 million.

Artisanal Spirits Company MD David Ridley said: We are pleased with the group’s strong first half performance which has once again delivered significant membership growth, whilst simultaneously continuing to build our business in terms of appreciating whisky stocks and infrastructure to support our future growth ambition for the medium to longer term.  

“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.  

“ASC’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.  

“Financially strong with current stock value over 2x consensus December 2022 net debt, we remain on track to deliver a doubling of revenue from 2020 to 2024.”