Top Shelf International (TSI) has reported its half-year financial results for FY23 with an increase in brand and group revenue along with a reduction in costs.

The producer of NED Whisky and Grainshaker Vodka reports brand revenue of $9 million in FY23 Q2 with half-year revenue totalling $14.2 million. It represents growth of 208 per cent compared to FY22 H1.

TSI CEO, Drew Fairchild, said group revenue growth increased by 95 per cent for FY23 H1.

“We continued to see great progress in the application of our Australian Spirits Platform,” he said.

“Building and activating the NED Whisky and Grainshaker Vodka brands and the premiumisation and expansion of our portfolio drove growth in distribution and increased velocity.”

Operating costs relative to revenue have declined from 66 per cent in FY22 H1 to 47 per cent in FY23 H1, according to the TSI Quarterly Activities Report.

The company holds 2.1 million litres in whisky assets worth $40 million with $25 million in agave assets which it expects to be valued at $35 million by the time it completes the Australian agave brand project by the end of FY23.

“The company is actively pursuing opportunities to realise the intrinsic value and monetise the investment in Australian agave, including off balance sheet funding discussions,” Fairchild said.

“This is envisaged to provide the company with capital options.”

At December 2022, TSI had more than 520,000 agave plants in the ground with a further 245,000 plants in nursery. 

With packaging assets valued at $13 million, the distiller plans to further leverage its position through partnerships.

“The company is currently in advanced negotiations with a multinational beverage producer to provide contract packaging services for a limited number of products over a two-year period, a timeframe that aligns with the continued scaling of our brands,” Fairchild said.

“Production is currently planned for mid-February.

“Covering our fixed production costs across canning, bottling and distillation and maintaining our existing sales and marketing capability, whilst continuing to grow our branded revenue base and the agave brand to market, delivers positive operating contribution.”

TSI has also invested $8.1 million in strategic growth drivers over H1 – such as Supercars and Australian Open tennis sponsorship – to build brand awareness and consumer engagement. 

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