The Artisanal Spirits Company, owner of the Scotch Malt Whisky Society, has seen a widening of pre-tax losses in a “challenging global whisky market”.

However, chief executive Andrew Dane says momentum is building in the second half of the year, particularly across Europe and China, and US shipments are now resuming momentum.

Pre-tax losses for the six months to the end of June rose 17% to £3.6 million from £3.1m in the corresponding period last year.

Revenue fell 4%, largely reflecting a c£1m reduction in rephased US shipments from H1 into H2 as the company implemented plans to mitigate tariffs amid weaker US consumer confidence. Sales in the US plummeted by 50%, indicating the impact of the levies.

Excluding US shipments, underlying revenue performance was up 6% year-on-year as cask sales growth offset declines in Asia and mainland Europe.

Membership retention remained strong at 70%, with total membership numbers in the first half up 3%. Revenue at SMWS venues rose 6%.

Chief executive Andrew Dane 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.

“Our proven strategy of investing in whisky stock continues to provide ASC with optionality – providing an impressive, award-winning, asset base which satisfies our requirements well into the next decade, delivering a significant uplift in value creation and diversifying our revenue streams through strategic cask sales.

“H1 has seen the successful launch of Artisan Casks, as well as our expansion into India and Vietnam which mark important steps as we continue to build this unique business for the medium to longer term. 

“With momentum building in H2, particularly across Europe and China, and US shipments now resuming momentum, we remain on track to deliver FY EBITDA in line with market expectations.”

Speaking to Daily Business after the results announcement, he added: “The impact of US tariffs has been about a couple of hundred thousand pounds which is quite a big chunk of our profits, but it is not catastrophic.

“We had hoped at the start of the year that 2025 would have been better but it has been more challenging. Tariff uncertainty has certainly played a part. It is case of us having to be more patient, but the business is in good health and we are making improvements to things we can control.”

Nick Sherrard, managing director at Label Sessions, said: “Change is coming to the whisky and spirits market with big shifts in consumer behaviour, new competition, and complexity in global distribution that Trump’s tariffs are only one example of.

“And you can see the impact of all of that in today’s update from the Artisanal Spirits Company.

“What worked for Scottish whisky in the past is not going to be what unlocks future opportunity, and the industry is becoming more conservative at the precise moment it needs to be most radical.

“Increased access to markets like India and Vietnam will amount to very little if consumers do not see the brands as relevant. In that respect, the Artisanal Spirits Company needs to decide if it is building for the future or optimising for the short term.”

Wayne Brown at Panmure Liberum says: “Trading in the initial weeks of H2 have been positive. The group has seen double-digit growth in the UK in the first months of H2, Venues have continued to grow, and China sales grew double digit in August.

“The £31m market cap is backed by a very substantial and appreciating inventory base with a current market value of over £100m (compared to the current group EV of £60m) and an estimated retail value in bottle of approximately £500 million, potentially generating c. £300m of future gross profit.”