Artisanal Spirits sees sales grow upon suspension of US tariffs

Artisanal Spirits listed on AIM market in June

The Artisanal Spirits Company (LON:ART), the owner of The Scotch Malt Whisky Society (“SMWS”) and other spirits for sale primarily online to a discerning global membership, confirmed its H1 results on Thursday.

The group’s revenue increased 20% to £7.9m, slightly ahead of management’s expectations.

Strong international sales growth, particularly in America, with performance boosted by the suspension of US tariffs on imports of single malt Scotch whisky in March 2021.

The AIM-listed firm saw a recovery in UK venue & events sales following phased reopening in Q2.

Gross profit increased 31% to £5.1m. This resulted from the revenue volume growth, as well as the gross margin improvement to 65%, which reflected the positive impact of the suspension of US tariffs.

The Artisan Spirits company share price is up by 3.58% on Thursday morning.

David Ridley, Managing Director of the Company, said:

“Momentum in key international markets continues to build on the back of growing demand for our products and we have seen a strong and sustained recovery in UK venue & events sales since their phased reopening from COVID from mid-May onwards, giving us confidence in meeting market expectations for the full year. While Brexit continues to present some logistical challenges for exports to certain EU markets, we continue to work through them.”

“From an operational perspective, we continue to make decisive progress against the strategic objectives outlined at the time of IPO, with ongoing material investment in spirit and cask wood and good progress with our new supply chain facility, standing us in excellent stead for the future.”

“We are still at the very beginning of our journey as a listed company, but we have made a bright start. Against a backdrop of favourable market trends, we are optimistic about our ability to realise our growth ambitions to double ASC sales between 2020 and 2024, and we look forward to keeping shareholders updated as we work to deliver long-term value.”