Drinks accelerator Mighty Craft has seen its growth accelerate in the second quarter of its financial year, with record quarterly cash receipts of $17.7m, up 179 per cent on the second quarter of the 2021 financial year.

In addition operating cash outflow fell from $5.5m in the first quarter to $1.58m, which has helped the company to deliver positive EBITBA in quarter two, representing Mighty Craft’s maiden quarterly profit since the company was incorporated.

The company reported wholesale spirits and RTD sales revenue of $4.2m, up 54.9 per cent on the prior corresponding period (pcp), while beer and cider sales of $8.4m represents growth of 21.9 per cent versus pcp.

The company said its record cash receipts were boosted I the quarter with the integration and acceleration of Adelaide Hills Group (AHG) and the successful launch of Better Beer in November 2021.

Mighty Craft’s Managing Director, Mark Haysman said: “Q2 was a strong quarter from a sales perspective and more importantly from a profitability and operating cashflow perspective. This was the first quarter where we have seen the impact of scale on the Mighty Craft P&L and the bottom-line.

“We will provide further insight when we report our H1 results however this demonstrates the near-term potential for positive cashflow and sustainable profit which has been consistent in our messaging.

“The business is built for scale and Q2 FY22 was the first time we have been able to demonstrate the impact to the bottom line.

“Given the runaway success of Better Beer, the company expects the sales trend to continue to improve. While COVID continues to present challenges across the business, we are confident in delivering a strong H2.”

Looking ahead Mighty Craft said its whisky acceleration program is continuing with whisky stock under maturation of 218,743 litres, an increase of 16,147 litres from 30 September 2021. In addition the company is relaunching the Kangaroo Island Spirits brand in February 2022 at the Kangaroo Island Racing carnival with expanded ranging to follow from March. 

The company’s cash balance as of 31 December 2021 was $10.7m up from $4.85m on 30 September 2021.

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.

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