The Edinburgh-based holding company, Artisanal Spirits Co., which operates the Scotch Malt Whisky Society, has reported a widened pretax loss for the first half of the year. Despite this, the company remains confident in meeting full-year market expectations for higher earnings.
Pretax Loss Widened
Artisanal Spirits Co. announced on Monday that its pretax loss for the first half of the year increased to £3.5 million ($4.3 million), compared to a loss of £1.1 million in the same period last year. The company attributed this widening loss to continued investment in its systems and people. It also reported higher selling and distribution expenses, as well as increased cost-of-sales and administrative expenses.
Slight Increase in Revenue
Although the company experienced a widened loss, it saw a slight increase in revenue. Revenue rose to £10.2 million from £9.9 million in the previous year. Additionally, the membership, which serves as a key indicator of future revenue, grew by 9%.
Market Challenges and Growth Opportunities
Artisanal Spirits Co. acknowledged the pressure it faced from changing macroeconomic conditions and cost-of-living pressures throughout 2023. Despite these challenges, the company believes it is well-positioned to continue growing, even in the face of market conditions.
Confident in Meeting Full-Year Expectations
The performance of Artisanal Spirits Co. in the initial weeks of the second half of the year has been positive. As a result, the company is confident in meeting its full-year market expectations, projecting revenue to reach £25.2 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach £1.1 million. In comparison, last year the company reported revenue of £21.8 million and adjusted EBITDA of £395,000.
In conclusion, Artisanal Spirits Co. remains optimistic about its ability to meet higher earnings expectations for the full year, despite the widened pretax loss in the first half of the year. The company is determined to navigate market conditions while continuing its growth trajectory.