SMWS owner posts 4% H1 drop
The Artisanal Spirits Company (ASC) saw revenue fall by 4% in the first half of 2025 after sales in the US and Asia plunged by double digits.
The ASC, owner of the Scotch Malt Whisky Society (SMWS), reported revenue of £9.7 million (US$13.1m) for the first six months of this year, down by 4% year on year.
Gross profit declined by 10% to £5.7m (US$7.7m) during the first half (H1).
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 50% to £1m (US$1.3m) due to a £500,000 (US$676,700) non-recurring cost in January to enable the group to control its US operations.
The implementation of its new US route to market will help the company to protect its profitability in the long-term, the firm noted.
Excluding US shipments, the ASC posted a 6% sales rise in H1, boosted by cask sales.
The ASC described the US as a ‘challenging market’ that remains the world’s biggest for single malt Scotch. The company said the market grew by more than US$1.3bn in ultra-premium whisky sales (bottles over £45) in 2024.
The ASC’s sales in the Americas plunged by 50% in the first half, with the group noting the impact of US shipments and ‘weak consumer confidence’ heightened by tariffs.
SMWS membership in the US decreased by 9%, but the group expects numbers to improve from the upcoming launch of a new loyalty programme and the debut of a new Signature range.
The company noted a 30% drop in Asia due to ‘challenging trading conditions’, with its SMWS membership falling by 8%.
A third of this decline was attributed to the closure of the company’s Hong Kong subsidiary.
During the first half of this year, the ASC launched its private luxury Artisan Casks programme, and entered India and Vietnam.
‘Stronger H2 expected’
The group said: “We remain confident the market will recover in the medium to long term, and Asia remains a key market with regards to our Artisan Cask offering.
“In China, membership has grown to over 2,100 and much of the 30% revenue decline reflects phasing, with a stronger H2 expected to achieve close to flat year-on-year full-year sales, supported by membership growth, together with timing of new product releases.”
The ASC recorded growth of 21% in Europe, with membership numbers up by 10%. In the UK, total group sales were flat.
The growth in European subscribers was driven by a UK-specific marketing campaign, which led to an additional 3,000 new members.
Andrew Dane, CEO of the ASC, said: “We remain focused on executing our strategy and maintaining profitability, whilst continuing to navigate macro factors in the markets in which we operate.
“Our diversified revenue streams, strong member engagement and disciplined cost management have enabled us to deliver adjusted EBITDA in line with the prior year, despite a softer trading environment in certain geographies.”
Outlook for the future
The ASC noted that trading in the initial weeks of its second half (H2) has been positive, driven by double-digit growth in the UK in the first months of H2.
In China, the group saw sales rise by double digits in August.
The ASC expects US shipments to gain momentum as stock is delivered to the market, following the completion of the route-to-market change.
“With momentum building in H2, particularly across Europe and China, and US shipments now resuming momentum, we remain on track to deliver FY [full-year] EBITDA in line with market expectations,” Dane added.
The H1 results followed stagnant full-year sales for the ASC as revenue in China fell by a third.
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