US shutdown to hit profits at Artisanal Spirits Company, shares slump
By Abigail Townsend
Date: Thursday 20 Nov 2025
(Sharecast News) - Shares in The Artisanal Spirits Company tumbled on Thursday, after the whisky specialist warned that the US government shutdown and an overhaul of its American sales channel would dent profits.
The AIM-listed drinks firm said the shutdown - the longest in US history - had created a substantial backlog in the regulatory approval of new product labels.
Normally taking 72 hours, the process is now expected to take more than six weeks, ASC said.
As a result, $3.2m of Scotch Malt Whisky Society shipments due to ship in November will now be unable to clear US customs by the end of the year.
The delay is expected to hit full-year revenues by around £2.5m, and earnings before interest, tax, depreciation and amortisation by around £2m.
However, Edinburgh-based ASC also confirmed it was bringing forward changes to how it manages US sales, further weighing on revenues and profits. It is ending its relationship with its existing import partner, and will instead use its own local US subsidiary to work directly with third-party partners.
ASC said the move would deliver "substantial" cost and efficiency benefits long term.
However, it will need to take back any leftover stock at the import partner as at 31 December, weighing on sales and earnings.
In total, it now expects a non-recurring, non-cash revenue impact of between £4m and £4.5m in the current year, and between £3m and £3.5m on EBITDA.
As at 1100 GMT, shares in ASC had plunged 20% at 32.45p.
Andrew Dane, chief executive, said: "The US is the world's largest market for Scotch malt whiskey, and while the market has been challenging over the last 12 months...momentum is improving and the US remains the largest, long-term strategic opportunity for the business.
"Hence, we have taken the decision to leverage the opportunity presented by the impact of the recent shutdown to accelerate the next stage of our strategic development in this market."
Panmure Liberum, which has a 'buy' rating on the stock, said: "While the short-term disruption may weigh on investor sentiment, we note that the move strengthens the group's strategic position in the US, its largest long-term growth opportunity."
Panmure is ASC's nominated advisor and broker.
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