Sipsmith has suffered its fifth consecutive year of declining sales, raising concerns for the London-based distillery.
- Recent accounts show a turnover of £14.2 million for 2023, down from £18.2 million the previous year.
- The company has endured a substantial pre-tax loss of £17.2 million in comparison to £13.1 million in 2022.
- Sipsmith’s sales in the UK and Europe have notably decreased, although there was a slight revenue uptick in the USA.
- Sipsmith will cease its UK market and commercial activities by February 2025, focusing solely on gin production.
Sipsmith, a prestigious gin distillery, has been facing a persistent decline in sales for five consecutive years, according to its latest financial statements filed with Companies House. The company’s 2023 turnover stands at £14.2 million, reflecting a significant drop from the previous year’s figure of £18.2 million.
In addition to the revenue decline, Sipsmith recorded a pre-tax loss amounting to £17.2 million in 2023, compared to a £13.1 million loss in 2022. The company last reported a profit before tax in 2017 when it achieved £753,000.
Since achieving a turnover peak of £22.7 million in 2018, Sipsmith’s sales trajectory has been downward. Sales figures fell to £22.3 million in 2019, £21.7 million in 2020, and further decreased to £20.3 million in 2021. The overall pre-tax loss since its last profitable year has surpassed £60 million, posing a significant concern for the firm.
The distillery’s UK turnover diminished from £15.3 million to £12.1 million, while European sales decreased from £893,000 to £514,000. Despite these downturns, the company saw revenue growth in the USA from £1 million to £1.1 million. Other international revenues were not as fortunate, falling from £982,000 to £438,000.
Under the ownership of Suntory Global Spirits, Sipsmith is pivoting its strategy to focus exclusively on gin production. The board indicates that the continued financial losses stem from investment efforts in the UK and leveraging its position within the global spirits market. Post-financial year, a decision was made to halt Sipsmith Limited’s UK commercial and marketing operations by February 2025.
Sipsmith is undergoing significant strategic shifts in response to continuing financial challenges.
