Lark Distilling Co (Lark), has released its half-year results which show increased net sales growth, with growth in direct-to-consumer, global travel retail and export sales being partially offset by lower domestic sales.
Net sales revenue increased by $500,000 to $7.9m, up seven per cent on the prior corresponding period, with CEO Sash Sharma saying that the business has continued to build on the strong operating conditions from the last part of the previous financial year.
“Operationally as a whole, our business performance continues to improve, with HY25 Net Sales up seven per cent to $7.9m. Pleasingly our D2C, GTR and direct export businesses performed strongly in HY25, building on the positive operating momentum from the second half of FY24,” Sharma said.
“HY25 saw a planned increase in marketing spend, with our strategic investment in the Lark Brand restage progressing well. This exciting workstream sees updated Lark brand positioning and identity, a new portfolio structure including 700ml bottles, updated packaging and go-to market tools and assets being developed and on track for completion by the end of the financial year.”
He added: “Positive momentum continues on the direct export side of our business, with upweighted H2 FY25 Trade activation programs being agreed with Distribution Partners, and the appointment of a Regional Brand Ambassador for Asia to drive trade and consumer engagement in the region.
“Net Sales for the half year were $0.5m, with sales to Indonesia, Singapore and Philippines; bringing Export Sales for the first 12 months to $1.4m.
“Our GTR business also continued its good performance in the first half, with sales up 18 per cent versus the prior corresponding period. New ranging was secured in Adelaide International Airport from November, with all major Australian International Airports now ranging Lark and Forty Spotted, and a strong activation and promotional program is in place for Q3 and Q4 FY25 in both Sydney and Melbourne International Airports.”
In June of last year, Lark appointed Spirits Platform as its domestic distributor, and Sharma said this new partnership was “progressing well, albeit set against the backdrop of challenging trading conditions”.
Sharma said: “Performance from our Domestic B2B business has been broadly in line with our expectations, unfortunately depletions into trade over the crucial Christmas selling period were negatively impacted by industrial action impacting Endeavour Group’s Victorian distribution centre, leading to out-of-stock items on some key SKUs.
“We are working collaboratively with Spirits Platform, utilising their portfolio strength and commercial reach, to drive Lark’s brand equity and grow sales over time, of our current and future range.
“This includes the exciting release of ‘KURIO’ – a blended Malt Whisky, from the House of Lark to be launched in Domestic B2B in Q4 FY25 through Endeavour Group and Independents channel, with national ranging in Dan Murphy’s confirmed as well as Tasmanian BWS stores.”
Looking ahead Sharma said: “Significant progress is being made on the transition to Pontville as the long term home of Lark, with work underway to increase distilling capacity to around half a million litres (at 43 per cent ABV) with increased efficiency in this first stage of development, along with blending, filtration, cooperage, bottling and safety upgrades as we consolidate operations at the site.”