Lark Distilling Co. Ltd. · ASX:LRK
Lark Distilling — FY2024 Earnings Presentation
38 slides from Lark Distilling's earnings presentation, Aug 27, 2024
Slide 1: FY24 Investor Briefing
bN LARK DISTILLING CO. LTD FY24 INVESTOR BRIEFING 27 AUGUST 2024
Slide 2: Lark will be a leader in New World whisky
LARK WILL BEA LEADER IN NEW WORLD WHISKY. — “A
Slide 3: Lark will lead Tasmanian whisky
LARK WILL LEAD TASMANIAN WHISKY... LARK is best positioned to lead the rise: LARK IS PROUDLY AUSTRALIA'S NO. 1 LUXURY SINGLE MALT FREEDOM TO UNPARALLELED ABILITY TO INNOVATE STORY, 30 YEARS OF CLIMATE AND HISTORY AS ReGen OUNDARIE PROVENANCE TASMANIA'S 181 ee BON ARIES AND OLDEST FUTURE SINGLE MALT
Slide 4: FY24 Investor Briefing
For personal use only FY24 INVESTOR BRIEFING 4
Slide 5: H1 FY24 Results - LARK Distilling Co.
H1 FY24 Results - LARK Distilling Co. Net sales of $14.0 Whisky bank of 2.5 For personal use only Operating EBITDA of million1 in line with prior $(2.8) million million litres* market update2 underwriting future (down $3.1m on FY23) sales growth Gross margin of 68% Impact of legacy indirect (down ~1
Slide 6: Overview of Seppeltsfield Strategic Partnership
For personal use only • Formal long-term barrel supply agreement with Seppeltsfield Wines Pty Limited, an entity associated with Lark Director, Warren Randall • Partnership will secure access to premium oak barrels for Lark, formalising first right of use and exclusivity arrangements to provide Over
Slide 7: Equity Raise and Use of Proceeds
(cont’d) For personal use only Equity raising of ~$25m comprising a ~$15m conditional placement, ~$6.5m institutional placement and a Share Purchase Plan: • Institutional placement completed on 30th July, with new shares issued on 2nd August. Equity Raise • Share Purchase Plan almost 5X oversubscrib
Slide 8: For personal use only
For personal use only . LARK will build a globally Creation of repeatable and recognised and diversified (geography and channel) differentiated luxury brand revenue streams . LARK will prioritise cash generation to underpin growth while exercising capital discipline 8 8
Slide 9: For personal use only
. For personal use only • Continued awards recognition & brand partnerships . • Innovation to drive halo and brand equity • Commenced work on portfolio restage, including appointment of creative design agency • Asian export strategy progress, Distributors appointed with initial sales of $0.9m in H2
Slide 10: FY24 Investor Briefing
For personal use only FY24 INVESTOR BRIEFING 10
Slide 11: Gold medal and category wins across international awards
Continuing to grow LARK’s reputation with gold medal and category wins across For personal use only leading international awards programs. LARK Symphony No.1 - Blended Malt Whisky LARK Classic Cask - Single Malt Whisky AUSTRALIA’S BEST - CATEGORY WINNER GOLD MEDAL LARK Garage Project XPA - Single Ma
Slide 12: Growing Lark's awareness and credibility
CONTINUING TO GROW LARK’S AW ARENESS, REINFORCING CREDIBILITY W IT H TRADE, CONSUMERS & REACHING HNW I For personal use only
Slide 13: Driving new occasions, brand news and recruitment
DRIVING NEW OCCASIONS, BRAND NEW S AND RECRUITMENT For personal use only
Slide 14: FY24 Investor Briefing
For personal use only FY24 INVESTOR BRIEFING 14
Slide 15: International Sales Momentum
INTERNATIONAL SALES MOMENTUM For personal use only • Growing LARK in international markets with key distributor partners is a strategic priority • Good progress made in 2HFY24 in growing our new sustainable direct Export Business via in-market distributors • Distribution Agreements now in place for
Slide 16: International Sales Momentum
INTERNATIONAL SALES MOMENTUM • GTR provides a unique opportunity to engage with our target audience and drive For personal use only brand discovery & awareness • As Australia’s Number 1 Luxury Single Malt Whisky – the GTR channel is important in the seeding of LARK to international consumers – as th
Slide 17: Domestic Leadership Position
DOMESTIC LEADERSHIP POSITION For personal use only • Australia’s leading independent spirits distributor, Spirits Platform (SP), appointed as Lark & Forty Spotted domestic B2B distribution partner effective 1st Aug 2024. • SP are the market leader in Ultra-Premium and above Single Malt, and strong p
Slide 18: FY24 Investor Briefing
For personal use only FY24 INVESTOR BRIEFING
Slide 19: For personal use only
▪ Disciplined cost control drove a YOY $1.2 million reduction in net cash used in operating For personal use only activities ▪ Whisky continues to be laid down for maturation - whilst balancing our working capital requirements ▪ Entry in new markets will see requirement for brand investment, underpi
Slide 20: For personal use only
For personal use only • Pontville will be the home of Lark into the future, one which is reflective of Australia’s Number 1 Luxury Single Malt • Will see increased distilling, bottling, and maturation capacity at Pontville, at a site we can delight consumers, trade partners and distributors • Modula
Slide 21: FY24 Investor Briefing
For personal use only FY24 INVESTOR BRIEFING 21
Slide 22: Profit & Loss
Profit & Loss • Reported Net Sales of $14.0 million was down $3.1m or -18% vs FY23 A$'000 FY24 FY23 vs LY $ vs LY % • Foreseen impacts of the slowdown of the Chinese Indirect Export ($2.3 million), For personal use only Net Sales * 13,954 17,023 (3,069) -18% and sales of old one-off releases in othe
Slide 23: Balance Sheet
Balance Sheet • Lark ended FY24 with a cash balance of $2.4 million with a further $15 million A$'000 June-24 June-23 vs LY $ undrawn committed bank facility; full facility available to be drawn to January For personal use only Cash and cash equivalents 2,355 7,160 (4,805) 2028. Trade and other rece
Slide 24: Cashflow
Cashflow FY24 FY23 vs LY $ vs LY % For personal use only Operating activities Receipts from customers 19,232 24,192 (4,960) -21% Payments to suppliers, employees and others (18,242) (19,700) 1,458 -7% • Disciplined focus on cash & capital discipline sees improvement in Purchase of inventory (5,870)
Slide 25: Underwriting Future Sales Growth
Underwriting Future Sales Growth • LARK’s whisky under maturation at 2.5 million litres at 43% ABV For personal use only at 30 June 2024 (FY23: 2.4m litres), with book value (at cost) of $57.7m • More modest growth than previous years, with existing Whisky Bank allowing us to optimise production in
Slide 26: FY24 Investor Briefing
For personal use only FY24 INVESTOR BRIEFING 26
Slide 27: For personal use only
For personal use only . LARK will build a globally Creation of repeatable and recognised and diversified (geography and channel) differentiated luxury brand revenue streams . LARK will prioritise cash generation to underpin growth while exercising capital discipline 27 27
Slide 28: Positioning
For personal use only POSITIONING LARK MARKETING BLENDING PORTFOLIO SALES STRATEGY PRODUCT FINANCE BRAND IDENTITY & PACK RANGE, PRICING, PHASING PLAN We See What You Won’t. GTM TOOLS & ASSETS
Slide 29: For personal use only
For personal use only Clear positioning and brand hook with • Clear simple navigation • Role & price point Relevance for International Expansion • Assurance for consumers & • 700ml transition (key export markets & Domestic Audience: customers initially) • Who (Consumer) • Identifies hero products •
Slide 30: For personal use only
For personal use only • Represent LARK as a modern leader • A clear plan and strategy to support • Clear launch program – by market / in luxury range, pricing and phasing in by channel • Clear guidelines for all stakeholders, domestic, GTR & Export • Launch by the end of FY25 including distribution
Slide 31: Investor Briefing - LARK Distilling Co.
For personal use only ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Investor Briefing - LARK Distilling Co. 31 31
Slide 32: Priorities, KPIs, timing and progress
PRIORITY DESCRIPTION KPI TIMING PROGRESS For personal use only ▪ LARK Single Malt Restage LARK will build a globally recognized (architecture, format etc) By FY25 ▪ Work commenced on portfolio restage, and differentiated luxury Single Malt appointment of creative design agency. On brand, and this wi
Slide 33: FY24 Investor Briefing
For personal use only FY24 INVESTOR BRIEFING 33
Slide 34: FY25 Outlook
• Portfolio & positioning development through restage to be launched by the end of FY25 For personal use only • Increased investment in A&P in short term to >30% of Net Sales to support Asian Export growth and build brand awareness in all markets • Enhancements to Lark's cellar door offering in Hoba
Slide 35: LARK Distilling Co.
LARK Distilling Co. x Q Z ti o am <x Ajuo asn yeuossed 104
Slide 36: Impact of in-market Distribution Partners
Impact of in-market Distribution Partners • Lark will deliver growth through working with specialist in market distributors, with Distribution margin in value chain before Net Sales For personal use only • Model gives variable cost base for sales team, while unlocking increased commercial coverage.
Slide 37: Disclaimer
LARK Distilling Co. Disclaimer The information contained in this presentation has been prepared by Lark Distilling Co. Limited (“LARK”). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in LAR
Slide 38: Contact
Approved for release by the Board of Directors. For more information contact: Lark Investor Relations Peter Kopanidis +61 412 171673 investors@larkdistilling.com LARK MADE OF TASMANIA