Gage Roads

Good Drinks Australia (GDA) has reported ‘a good result given industry-wide disruption’ for its 2022 financial year, saying that its ‘strategy is on track’.

GDA, which owns Gage Roads, Atomic and Matso’s, reported FY22 EBITDA of $8.4m, with $7.3m coming from its core drinks business and $1m from its hospitality businesses, helped by the opening of Gage Roads Freo in January. Total revenue for the year increased 30 per cent to $70.7m, while there was also a strong improvement in gross profit margin, up 26 per cent to $47.1m.

In its report to the ASX, Gage Roads described its earnings number as, “a good result given industry-wide disruption in hospitality and key trading periods,” adding, “GDA continues to outperform the market [with] strategy on track.”

However the earnings are down 22 per cent on the previous year, with GDA pointing to a number of factors including fewer drinking occasions in December, which reduced pull-through and lower replenishments in January and February. In addition the brewer said on-premise sales in the second half of the year were “affected by density limits, mask mandates, staff shortages [and] reduced overall trade”.

In highlighting its claim of outperforming the market GDA reported 16 per cent annual growth of its brands, while its production volume through the financial year was 18m litres.

Looking ahead GDA said it was looking forward to a return to normal trading conditions in FY23 and in particular to no interruptions in the hospitality and retail channels, which will allow for planned execution during its key trading periods.

In addition GDA pointed to “incremental earnings streams and continued growth of own brands” which it says is “expected to deliver step-change in earnings and shareholder value in FY23.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

Leave a comment

Your email address will not be published. Required fields are marked *