Shares dive in Scotch whisky firm amid 'volatile' conditions

The Herald Scotland

18-07-2025

Artisanal said its performance had been 'resilient' against the backdrop of volatility in the first half of the year, posting an underlying loss of £1m that was 'broadly in line the prior year loss'. Revenue 'marginally decreased', with the fall largely attributed to a reduction of around £1m in rephased US shipments arising from the company's tariff mitigation plan. The US has slapped a baseline of tariff of 10% on most goods entering the country from the UK.
Artisanal said it remained focused on achieving results for the full year in line with current market expectations that forecast revenue of £26m, up from £23.6m, and underlying profits of £1.5m (up from £1.1m).
The company reported that membership retention of the Scotch Malt Whisky Society 'remains positive, at around 70%, although there was a marginal decline in overall membership versus December 2024' when it was stood at 42,700.
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It said in a statement to the stock market: 'During the period the US market was impacted by the recent tariff uncertainty. However, we have mitigated this in part through pre-emptive action to take greater control of our US operations from January 2025, ensuring we deploy the right long-term route to market.
'As a result, we have implemented a new approach to US shipments, effective from Q3-25, which should ensure that future planned shipments are completed via the optimal cost route thereby minimising any tariff impact. Whilst challenging trading conditions persist, we will navigate these through ongoing revenue diversification, realising the value of our asset base and continued focus on driving efficiencies within our cost base, remaining focussed on achieving EBITDA (earnings before interest, tax, depreciation, and amortisation) in line with expectations.'
Artisanal noted that it was progressing plans to open a new franchise for the Scotch Malt Whisky Society in India as early as the second half of this year, following the recent opening of a branch in Vietnam. The Scotch whisky industry has great hopes of a major breakthrough in India, one of the world's biggest spirits markets, after the UK signed a free trade agreement with the South Asian country.
Artisanal chief executive Andrew Dane said: 'The group has once again produced a respectable and resilient performance and we continue to make good progress, despite the persistence of volatile global trading conditions. ASC continues to benefit from an excellent and valuable asset base.
'The actions we have, and continue to take, to further diversify our revenue streams are proving effective as we navigate external macro factors - many of which are largely outside our control - to the best of our ability.
'The launch of Artisan Casks, our new luxury private cask programme, provides another incremental income stream for the group.
'We remain confident in the future opportunity for ASC and continue to build the business for the medium to longer term with entry into exciting new markets such as Vietnam, as well as progressing our plans for a future launch in India. This, together with a continued focus on rigorous cost efficiencies, stand us in good stead to deliver profitable growth in line with current market expectations.'
Shares in the company closed down 8%, or 4p, at 45.5p.