In This Article:
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Revenue Growth: 0.4% overall revenue growth in 2024, despite a 34% decline in China.
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EBITDA: First significant EBITDA of GBP1.1 million, with a GBP1.6 million improvement year-on-year.
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Net Debt: Reduced by GBP1.5 million in the second half of 2024, peaking at GBP27 million and reducing to GBP25.5 million.
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Asset Valuation: Over 18,000 casks valued at over GBP100 million as of July 2024.
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Membership Growth: Memberships up 57% since IPO in 2021.
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Cask Sales: GBP3.7 million in 2024, up from GBP2.3 million in 2023.
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Cost Savings: GBP0.5 million in commission, GBP0.8 million in marketing, and GBP0.7 million in other overheads.
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US Market Expansion: Investment in SMWS America and acquisition of Single Cask Nation.
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Q1 2025 Performance: Double-digit revenue growth in Q1 2025 compared to Q1 2024.
Release Date: April 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The Artisanal Spirits Co PLC (FRA:045) achieved its first significant EBITDA delivery since IPO, marking a record profit for the company.
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The company has successfully diversified its revenue streams, achieving overall revenue growth of 0.4% despite economic challenges, particularly in China.
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Memberships continue to grow, supported by the acquisition of Single Cask Nation, which outperformed stretch targets for the year.
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Strategic expansion into new markets such as Korea and Taiwan has been successful, with plans to enter Vietnam soon.
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The company has a substantial asset backing, owning over 18,000 casks of whiskey valued at over GBP100 million, which supports its financial stability and growth potential.
Negative Points
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Revenue from China has significantly decreased by 34% year-on-year due to economic headwinds, impacting overall growth.
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The company faces challenges in the US market due to potential tariffs, which could affect profitability despite mitigation strategies.
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There is a risk of oversupply in the whiskey industry, which could impact pricing and demand in the future.
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The company's net debt remains high, although it has been reduced, indicating ongoing financial leverage concerns.
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The company has not yet initiated shareholder returns such as dividends or share buybacks, which may be a concern for investors seeking immediate returns.
Q & A Highlights
Q: Can you provide insight into the current acquisition multiples in the sector and how you evaluate potential acquisitions? A: Acquisition multiples are challenging to define as our assets are worth twice our enterprise value, yet we are not bottom-line profit generating. We look for acquisitions that are complementary and incremental to our operations, ideally cash generative or profitable. We bring access to quality liquid and distribution capabilities to potential acquisitions, as demonstrated with Single Cask Nation.