The Artisanal Spirits Company has reported a loss before tax of £2.1m, although this was down slightly from the £2.7m loss reported in 2021.
The owner of the Scotch Malt Whisky Society's preliminary results for the year ended 31 December 2022 also revealed a 23% rise in gross profit from £11.2m to £13.8m year-on-year, on the back of gross margins rising from 61.5% to 63.6%.
Revenue increased 19% from £18.2m to £21.8m, ahead of expectations, with growth in China and UK venues, alongside rising membership in Europe, Australia, the US and Japan.
Adjusted earnings before tax also moved into positive territory at £400,000 - compared to a £600,000 loss in 2021.
The board stated that it remains confident in delivering on ambitions of doubling revenue between 2020 and 2024.
During the year, around £5.5m of further investment in both cask spirit and wood took the total number of casks to 16,500 - from 15,300 in 2021 - as well as completion of the new supply chain facility at Masterton Bond.
Stock-in-cask at the end of last year increased its notional retail sales value by 15% to approximately £493m - up from £430m a year earlier.
Scotch Malt Whisky Society membership increased by 12% from 28,700 to more than 37,400 with 'robust' growth in European members since the launch of the new EU route to market towards the end of 2021.
Annual contribution per member rose by 11% and retention maintained at an all-time high level of 77%.
Post reporting period, the Artisanal Spirits Company, growth in UK and EU was offset by Covid-impacted performance in China in the early part of the year, although signs of recovery there are now emerging.
In January, David Ridley stepped down as managing director and Andrew Dane was appointed as chief executive.
Dane commented: “We are making significant strategic progress with strong membership growth and delivery of another strong year of profitable growth supported by improvement across all financial and operational KPIs.
“Over the last year we have continued to make investment for the future in further spirit and wood, as well as our own supply chain facility, and while the rate of cash spend on this has peaked, we will continue to invest, with a focus for full year 2023 on IT and technology to deliver and accelerate our growth even further.
“Our markets benefit from underlying structural dynamics which have increased our addressable market,“ he continued, adding: “We are seeking to exploit this opportunity by growing our international footprint, including in South Korea and Malaysia.
“We remain on track to meet our 2024 revenue target of £30m and deliver significant progress on our path to sustained profitability.”
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