Top Shelf appoints new CFO as share trading halt continues

Yesterday, Top Shelf International announced that Ben Kennare will be stepping down from his position as Chief Financial Officer after more than three years in the position. Dimitrios Argyriou, who brings with him experience monitoring finances across both private and ASX-listed environments, has been announced as interim CFO.

The appointment has taken place during a temporary suspension of share market trading, which was requested by Top Shelf International on Friday 27 September due to issues related to funding.

“The Company is in the process of negotiating with its senior lender and its largest creditors, but as a result of those continuing negotiations will not be in a position to release audited financial statements on Monday, 30 September,” said Top Shelf International in a statement to the ASX.

“The Company continues to progress discussions with a number of parties regarding the provision of funding and potential transactions to address its short- to medium-term operating needs and the repayment of outstanding creditors.”

The trading halt announcement also outlined Top Shelf’s intention to “closely review its operating strategy while it is suspended from trading to ensure that efficiency and profitability is optimised.” The change to the Chief Financial Officer position is likely a result of this internal review.

"On behalf of all at Top Shelf, I would like to acknowledge Ben for his commitment and dedication to the Company,” said Trent Fraser, CEO.

“I would like to personally thank him for the support he has provided me since I joined Top Shelf several years ago… The Board and I wish Ben all the very best in his future endeavours."

Top Shelf International’s economic pressures are not new, with the company announcing a $5 million sale and leaseback deal on its Eden Lassie agave farm on 12 April to help combat debt.

Despite this, its recent end of year financial results showcased an underlying EBITDA improvement of 51% when compared to the year prior, with Act of Treason Agave sales “exceed[ing] initial expectations.”

In July, Act of Treason attained nationwide distribution via Endeavour Group’s two retail banners, reflecting the significant investment that Top Shelf International has put into its Queensland Agave brand. Over the past financial year, Top Shelf International invested $6 million into its Australian Agave program, or almost two thirds of its overall $9.3 million spend, adding to the $7 million it invested into Agave in FY23.

The first of its kind on the market, Top Shelf's Act of Treason brand has functioned as a proof of concept in a market that IWSR analysis believes will grow at a CAGR of 7-9% up until 2027.

“We’re approaching this as an opportunity to create something new and expand the horizons of a category that has been geographically limited for centuries,” said Fraser.

“Act of Treason symbolises the pioneering spirit of a project that will create a new region of agave spirit. The dry tropics of north Queensland are the ideal place for that to occur.”