The recent financial documents reveal Sipsmith’s persistent challenges and a decline in sales over five years.
- Sipsmith experienced a significant drop in turnover to £14.2 million in 2023, with pre-tax losses hitting £17.2 million.
- The company’s sales have been declining consistently since 2018, with substantial losses amounting to over £60 million pre-tax.
- Despite a slight increase in the US market, overall global revenue saw a notable decrease.
- Sipsmith’s strategic focus remains on gin production as it plans to cease UK market activities by 2025.
Sipsmith, a well-known name in gin distillation, continues to face financial hurdles as evidenced by its latest fiscal records. The London-based distillery reported a turnover of £14.2 million for the year 2023, accompanied by a pre-tax loss of £17.2 million. This marks a downturn compared to the previous year when Sipsmith’s turnover stood at £18.2 million with a pre-tax loss of £13.1 million.
The company has not seen a profitable year since 2017, when it enjoyed a pre-tax profit of £753,000. The last surge in turnover was observed in 2018, reaching £22.7 million, but the trend has since reversed. Sales numbers reveal a downward trajectory from £22.3 million in 2019 to £20.3 million in 2021, ultimately resulting in a loss exceeding £60 million pre-tax.
The detailed accounts specify a reduction in domestic turnover from £15.3 million to £12.1 million, and in Europe from £893,000 to £514,000. While the US market registered a slight growth from £1 million to £1.1 million, other international markets suffered a decline from £982,000 to £438,000.
As part of Suntory Global Spirits, Sipsmith is narrowing its operational lens exclusively to gin production, as affirmed by the board’s statement. This strategy involves halting management of UK market routes and related activities after February 2025, but will continue its core focus on gin. “The company continues to incur a loss as a result of ongoing investment in the brand in the UK and leveraging the company’s position within Suntory Global Spirits,” the board stated.
This outlook emerges at a time when competitors such as Glenfiddich’s producer reported rising sales and substantial profits. As Sipsmith navigates through its financial complexities, the focus stays firmly on recalibrating its business strategies.
Sipsmith’s financial trajectory remains challenging as they transition to a refined focus on gin production by 2025.
