Mighty Craft has delivered a business update on the fourth quarter for FY2022, which shows record sales for the business, setting it up for a strong start to the next financial year.

Cash receipts for the quarter came in at $27.1m, up 167 per cent on the prior corresponding period (pcp) and up 27 per cent on the previous quarter. Sales revenue was $23.2m up 161 per cent on pcp and 20 per cent on the previous quarter.

The company also noted that all wholesale targets for FY22 were met with 8.0m litres of actual beer/cider sales versus 8.0m litre target; 264k actual spirits bottles sales versus 250k target and 334k litres of whisky under maturation versus a target of 300k litres.

Mighty Craft’s Managing Director, Mark Haysman said: “Q4 FY22 was another record sales quarter for the business despite the mixed performance of our venues and sales into the on-premise channels. Wholesale sales strong growth trajectory continued throughout the quarter, buoyed by our high growth brands, Better Beer, Jetty Road, Kangaroo Island Spirits and 78 Degrees.

“During the quarter we were delighted to secure the upcoming international launch of Better Beer into New Zealand and to also see our no/low alcohol offerings gain significant traction in the grocery supermarket segment.  Our move into the low/no alcohol category is just one example of our strategy to quickly capitalise on emerging consumer trends and preferences by adapting, and leveraging off, our premium craft brands.

“We have been focused this past quarter on preparing the business for a strong start to FY23, with volume targets exceeded for FY22, whilst also streamlining the business through implementing our cost reduction plan and non-core asset divestment program.  All of which will enable the business to deliver ongoing and sustainable profits.

“We have made significant steps this past quarter towards ensuring we are in good stead from a capital management perspective for FY23.  The renegotiation of our Pure debt facility, the funds raised through the Whiskey Development Syndicate and our plans to divest our non-core assets will ensure we have the necessary funds to grow our business, in a more simplified and focused format, and continue to back the brand winners. 

“I look forward to updating you further on our plans for FY23 at our full year results.”

Mighty Craft also owns several venues which delivered a mixed performance in the final quarter, which is the lowest trading season of the year given the seasonal nature of venues.

The company said the overall contribution of venues continues to contract, with venues representing 19 per cent of group sales for the quarter. The venue portfolio continued to be loss making across the quarter driven by poor performance of the two Mighty venues and Jetty Road Lorne.

The company said it is seeking to divest both Mighty venues and will transition the Lorne venue to a more appropriate brand in time for summer trading.

Andy Young

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

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