Full Year 2024 Lark Distilling Co Ltd Earnings Call Transcript
Key Points
- Lark Distilling Co Ltd (ASX:LRK) has established distribution agreements in key Asian markets, including Indonesia, Singapore, Malaysia, and the Philippines, which is expected to drive future growth.
- The company has secured a strategic partnership with Seppeltsfield Wines, ensuring access to premium oak barrels for whisky maturation, which is a significant competitive advantage.
- Lark Distilling Co Ltd (ASX:LRK) has a strong balance sheet with a pro forma cash balance of approximately $27 million post-equity raise, providing financial flexibility.
- The company has received multiple awards for its whisky, including gold medals at the Global Spirits Master's competition and category wins at the World Whisky Awards, enhancing its brand reputation.
- Lark Distilling Co Ltd (ASX:LRK) has a clear strategic plan to become a leader in New World Whisky, with a focus on building long-term brand value, international sales momentum, and cash and capital discipline.
- Net sales revenue for FY24 was $14 million, down $3.1 million from FY23, primarily due to a slowdown in the Chinese indirect export channel and lower sales of older limited releases.
- The company reported an operating EBITDA loss of $2.8 million for FY24, indicating ongoing financial challenges.
- Gross margins decreased slightly to 68% from FY23, impacted by product and channel mix.
- Domestic consumer sentiment remains cautious, which could continue to pressure sales in the Australian market.
- The transition to a new domestic distribution partner, Spirits Platform, may result in lower gross margins due to the inclusion of distribution margins in the selling price.
We have opportunities for business to ask questions today. Shareholders will be able to participate and ask questions at the appropriate time whilst meeting is in progress. We may experience some time lag and this may cause some delays in your text, questions, or comments coming to our attention. (Event Instructions) Your questions will be addressed at the appropriate time with that, I'll now hand over to Sash.
Good morning, Sash.
Good morning, everyone, and thanks for joining us today for our FY24 results presentation. Joining me today is our CFO, Iain Short and you've already heard from Peter in Investor Relations. At the conclusion of our presentation today, Ian and I will take your questions submitted through the webinar platform.
Moving to slide 2 -- sorry, bear with us. Lark will be a leader in New World Whisky. Our ambition is to make Lark leader in New World Whisky. You've heard this from me before, and it won't
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