Half Year 2024 Artisanal Spirits Company PLC Earnings Call Transcript
Key Points
- The Artisanal Spirits Co PLC (FRA:045) reported a GBP1 million increase in EBITDA, reflecting improved profitability despite flat revenue.
- The company achieved a 2 percentage point improvement in gross margin and recurring cost efficiencies across A&P payroll overheads.
- Revenue diversification was supported by geographical expansion into Taiwan and Korea, and corporate diversification through the acquisition of Single Cask Nation.
- The company's asset value was independently valued at over GBP100 million, representing around 4x net book value and 4 times net debt levels.
- The business is starting to generate positive cash flow, with net debt having peaked, indicating a stronger cash profile.
- Revenue remained flat year-on-year, with a significant 30% decline in the Chinese market due to challenging local economic conditions.
- Membership retention slightly decreased, and the company faced a 7% decline in UK membership, although this was offset by increased revenue per member.
- The company acknowledged missing profit forecasts in 2023, impacting the share price negatively.
- The share price has fallen 60% since IPO, reflecting broader market conditions and underperformance in previous years.
- The company faces challenges in the Chinese market and high importation taxes in India, limiting short-term growth opportunities in these regions.
Good afternoon, and welcome to The Artisanal Spirits Company plc Half Year Results Investor Presentation. (Operator Instructions) The company may not be in a position to answer every question received during the meeting itself.
However, the company can review all questions submitted today and publish responses where it's appropriate to do so.
Before we begin, we'd like to submit the following poll.
I'd now like to hand you over to Andrew Dane, CEO.
Good afternoon, sir.
Questions & Answers
Afternoon, Paul. Thanks very much. And afternoon, thanks all for those of you joining the webinar, a chance to present our results for the first half of 2024.
So, I'll start with introductions. Myself, I'm Andrew Dane, Chief Executive joined here by my colleague, Billy McCarter, CFO.
If we talk about the headlines, there are five key messages to cover. The first is around the improvement in profitability, which has continued with GBP1 million increase in EBITDA
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