SCOTTISH MALT WHISKY SOCIETY SEES INCREASE IN REVENUE
The Artisanal Spirits Company has reported a 25% rise in revenue from £7.9m to £9.9m year-on-year, with growth in UK venues, Europe and China.
The Scotch Malt Whisky Society’s (SMWS) owner stated that gross margins of 63% were also ahead of the 61% achieved last year.
The interim results for the six months to 30 June showed that gross profit increased 21% from £5.1m to £6.2m, while losses of £300,000 – down from a £200,000 profit during the first half last year – were put down to investment for growth.
The group’s net debt position was £8.2m, up from £1.9m in June 2021, as investment continued in planned strategic initiatives, most notably spirit and wood and the new Masterton Bond supply chain facility – which should begin operations in the second half of this year.
Stock-in-cask at the end of June had an increased notional retail sales value of approximately £455m – up from £430m at the end of 2021. It has invested £2.4m in new spirit stock, taking the total number of casks to around 15,700.
SMWS membership growth which is a leading indicator of future revenue growth increased by 24% to more than 35,600 – including growth in European members since the launch of the new EU route to market last year.
There was also a return to membership growth in China during the third quarter and acceleration of growth in the US; up by around 200 members since the end of June alone.
The board is confident of delivering its ambition to double revenue between 2020 and 2024, with the current consensus revenue expectations for the year ending 31 December 2022 are £21.6m.
Managing director David Ridley (pictured above) commented: “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.”
He added: “The 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.”