By Jess Jones
The owner of the Scotch Malt Whisky Society (SMWS) has today issued a profit warning as demand for whisky in China has slowed.
In an update to markets on Friday, the Artisanal Spirits Company said it is now expecting revenues of £23m, instead of the previously forecast £25m, “due to weaker performance in China.”
A new 50th anniversary member cask sales programme, launched in November, has also taken off at a more sluggish rate than expected.
But the AIM-listed group said it “remains confident” it can continue to grow profitably next year, as it continues adding revenue streams.
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SWMS has launched a monthly subscription service, costing £45, allowing non-members to try a selection of miniature bottles before they buy full-size.
It recently reached the 40,000 members mark, who each pay £85 per year, with an app coming later this month.
Andrew Dane, chief executive of The Artisanal Spirits Company, said: “Whilst it is disappointing that our Q4 sales in China and the sales rate of the brand-new cask programme have not yet met anticipated levels, the remainder of the business has performed well and grown in line with expectations and we are on track to deliver substantial EBITDA growth in H2-23.”
