Good Drinks Australia (GDA) has reported its 2024 financial results with “significantly improved earnings” in its core business, “strong earnings” in its hospitality business and seven per cent volume growth across its portfolio of brands despite a declining beer market.
In FY24 GDA delivered underlying EBITDA of $8.2m, up 14 per cent on the previous year, which the group said highlighted the strong contribution that the hospitality segment continues to provide to overall earnings.
In its statement to the ASX, GDA said: “The successful opening and integration of our much-loved Matso’s Sunshine Coast venue is also a milestone to be proud of, complementing our flagship venue Gage Roads Fremantle, which again enjoyed a successful and record year of operations.
“Each of our international partner brands grew in their respective, highly competitive segments and we are excited to add Rekorderlig Cider to this part of our business.
“This positions Good Drinks Australia clearly as one of the most successful Australian brewers and national sales, distribution and marketing platforms, fourth in market share (behind Asahi (CUB), Kirin (Lion) and Coopers) and the fastest-growing of the top four national brewers.”
The statement added: “Sustained investment in sales and marketing is worth it.
“This year Good Drinks invested $9m in our sales function including additional people in field and key account roles and an introduction of a national call centre of excellence, allowing us to improve our service to remote and regional areas.
We also invested $9.9m in our marketing activities. Overall we increased our sales and marketing expenditure by $0.5m to $18.9m. Our strategy to focus these resources on key markets and on key brands has been successful, with QLD up 26% and WA up 11% in volume of Good Drinks brands, being driven predominantly by Gage Roads and Matso’s.
“Our entire portfolio of brands continue to grow in all other states and channels too. Magners, Coors, Millers and new product developments such as Matso’s Nightlife 6% and Rider also contributed strongly to sales volumes for the year.”
Chairman Ian Olson echoed this sentiment of investment in sales and marketing, saying: “The Group generated $112m in revenue and an underlying EBITDA of $8.2m, which was a pleasing result amidst a subdued economic environment, marked by falling consumer spending power.
“Throughout the year your Company has continued to over-invest in the essential value drivers of sales and marketing, as part of a clear and deliberate strategy to grow market share, which the Board believes will ultimately deliver a valuation of the Company not currently reflected by the prevailing share price.
“This continued investment in sales and marketing, which by its nature is incurred ahead of expected growth in revenue, has created the country’s largest independent national sales, distribution and marketing platform, making Good Drinks the country’s 4th largest national brewer, and the fastest-growing amongst this cohort.”
He added: “Once again, the entire team at Good Drinks Australia is to be commended for their passion, professionalism and commitment to growing a world-class operation, with a mission to have a Good Drinks beverage in every fridge and pub in the country.