Artisanal Spirits, the owner of The Scotch Malt Whisky Society, experienced a 22% drop in shares after announcing that its revenue for the year will fall short of market expectations. The company attributed this setback to a weaker performance in China during the fourth quarter and lower-than-anticipated sales of its 50th anniversary program.
As of 08:20 GMT, shares were down by 12.5 pence at 45.0 pence.
For the year ending on December 31st, Artisanal Spirits anticipates reporting revenue of approximately £23 million ($29 million), plus or minus 1%. This falls short of consensus forecasts of £25 million.
While the company saw robust growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) throughout the second half, with adjusted EBITDA reaching around £2 million, the full-year adjusted EBITDA is expected to be approximately break-even.
Despite these setbacks, Artisanal Spirits maintains confidence in its ability to increase profits next year, with revenue and adjusted EBITDA projected to align with previous guidance.
"We have ensured that we have the right cost base for the business, we are well financed, and we remain confident of future profitable growth throughout FY23," reassured Chief Executive Andrew Dane.