ASX-listed Lark Distilling Co has reported total sales revenue of $14 million for the recently-finished financial year, down $3.1 million, or 18%, on the year prior. This is in line with figures already published by the Tasmanian whisky producer and is reflective of the slowdown of China’s indirect export market and of sales of old one-off releases in other channels. Respectively, revenue from these two channels decreased $2.3 million and $1.2 million in Financial Year 2024.
Despite this, CEO Sash Sharma said Lark finished the fiscal year in a positive position.
“We closed FY24 with good momentum, achieving a number of important milestones for both our domestic and export businesses,” he said.
“[This includes] our direct export sales to new markets for FY24, all in H2, were $0.9 million, with those sales offsetting more than half the shortfall in Chinese Indirect Export Channel of $1.6 million from H2FY23.”
Lark’s gross profit margins also took a hit, with net sales per litre reducing from $280 to $255. Lark attributed this to having less hospitality venues in its channel mix.
FY24 also saw various significant changes at Lark Distilling, including a $22.5 million capital raising, announcing Seppeltsfield Wines as a new strategic partner, and appointing Spirits Platform as its new domestic distributor.
“I am pleased to confirm that the handover to the Spirits Platform team worked seamlessly, and we are very excited about the increased coverage in the wholesale and independents channel that this Partnership will provide,” said Sharma.
“[Also], our recent equity raise will allow for upweighted brand investment in new markets to drive awareness and depletions, with accelerated investment and growth behind the restaged brand.”
Moving forwards, Lark has established three main goals for the upcoming year: to build long term brand value, to maintain international sales momentum and its domestic leadership position, and to demonstrate cash and capital discipline.
“Finally, as we consider our stable of assets, we will migrate away from Cambridge as our primary production facility as we set ourselves for the next stage of our growth; underpinned by the recent equity raise, we will transition distilling operations to an upgraded Pontville, with this site as the long-term home of Lark being reflective of the brand's luxury credentials,” said Sharma.
“This measured, modular approach towards our Distilling Assets means that our Bothwell Distillery is surplus to our requirements, with a sales and marketing campaign to support its divestment planned to commence in Spring.
“This transition will see focus, efficiency, effectiveness and collaboration - everything under one roof in time, and a site fitting for a future global whisky icon."
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