Lark Chair, Domenic Panaccio, has addressed the company’s annual general meeting, telling shareholders that despite the challenging economic conditions, the business has made “significant progress in several areas”.
Highlighting organisational changes and the recent equity raise, Panaccio said the Lark business is now right sized, with operational efficiencies contributing to operating cost and cash savings.
Panaccio said: “We have seen exciting green shoots in the crucial direct export and GTR channels. More recently in the domestic market, we transitioned to a new distribution partnership for the B2B channel with Spirits Platform, Australia’s leading independent spirits distributor.
“Significant progress is being made on the Lark brand restage by both marketing and production to deliver against the growth potential of the brand, while work is currently underway for the sale of our Bothwell site and the modest, modular development of Pontville as we transition this distillery into being the long-term home of Lark.
“These developments across the business set a strong foundation for Lark’s future success.”
Speaking about the current position of Lark, Panaccio said that CEO Sash Sharma and his team have “good operating momentum” and are executing the company’ strategic priorities.
Those priorities include building long-term brand value, delivering international sales momentum, maintaining a domestic leadership position, and underpinning these priorities with cash and capital discipline.
Panaccio said: “The successful equity raising of $25 million in the last quarter, supported by very strong demand from our retail shareholders under the Share Purchase Plan, provides Lark with the capital to allow us to drive growth and accelerate investment in brand marketing and international expansion.
“This of course within a framework of disciplined capital management, ensuring our investments deliver long-term value.
“As we look ahead to this financial year, the Board and the Executive Team are excited about the Lark Brand Restage which is progressing well, and the ongoing development at Pontville.”
Panaccio also welcomed Stuart Gregor to the Lark Board as a non-executive director, who will help Lark with its next phase of growth.
“Stuart’s deep and long industry experience working with many of the world’s most successful drinks businesses will be invaluable to Lark,” he said.
Earlier this year The Shout sat down with Lark CEO Sharma, to discuss his vision for the business and Australian whisky.