Half Year 2024 Lark Distilling Co Ltd Earnings Call Transcript
Key Points
- Lark Distilling Co Ltd (ASX:LRK) has a strong ambition to become a leader in New World Whisky, leveraging its 30 years of history and unique Tasmanian provenance.
- The company has secured distribution agreements in Indonesia and Singapore, with MOUs in place for Malaysia and the Philippines, indicating progress in international market expansion.
- Despite a challenging economic environment, the core Lark signature range saw a 13% increase in net sales year-on-year.
- Lark Distilling Co Ltd (ASX:LRK) has a high-quality whiskey bank of 2.4 million liters, providing flexibility for future sales growth and production planning.
- The company has extended its $50 million undrawn committed bank facility to January 2028, ensuring financial flexibility and stability.
- Net sales revenue for the half year was $7.4 million, down $2.2 million compared to the previous corresponding period (PCP).
- Gross margins decreased slightly from 68% to 66%, impacted by channel and product mix.
- The company reported an operating EBITDA loss of $8.4 million, highlighting ongoing financial challenges.
- There was a significant slowdown in the legacy indirect export channel, contributing to the revenue gap.
- Domestic wholesale channels and Tasmanian hospitality venues were negatively impacted by lower tourism and the cycling of limited releases from FY23.
Good morning, everyone, and thanks for joining us today for our 2024 half year 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, Iain and I will take your questions submitted on the web and our platform.
Moving to Slide 2. Our ambition is to make Lark a leader in New World, Whisky. This is an ambition that the entire Lark team is 100% committed to and we are progressing well on our journey to make this a reality. As we said at our recent Investor Day, bold statements must be backed up by unique and ownable building blocks. Lark will lead Tasmanian whiskey as we create and solidify our role on the global stage.
We truly believe Tasmania will be the next epicenter of quality whiskey following in the footsteps of scotch and Japanese. There are a number of things which give us this belief 30 years of history as Tasmania is first and oldest single malt and unparalleled story, unquestionable provenance and the right
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