Lark Distilling Co. Ltd. · ASX:LRK
Lark Distilling — H1 FY25 Earnings Presentation
38 slides from Lark Distilling's earnings presentation, Feb 25, 2025
Slide 1: For personal use only
For personal use only 1
Slide 2: Lark will be a leader in New World whisky
LARK WILL BEA LEADER IN NEW WORLD WHISKY. — aA
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 SCALE NOW, OUNDARIE PROVENANCE TASMANIA'S 181 eee BOARS AND OLDEST FUTURE SINGLE MAL
Slide 4: HY25 Investor Briefing
For personal use only HY25 INVESTOR BRIEFING 4
Slide 5: H1 FY25 Results - LARK Distilling Co.
H1 FY24 Results - LARK Distilling Co. Net sales of $7.9 Whisky bank of 2.5 For personal use only Operating EBITDA loss of million1, up 7% or $1.2 million million litres* $0.5m on HY24 underwriting future Gross margin of 63.6% sales growth Growth driven by D2C, GTR, down ~250bps on HY24 of 66% direct
Slide 6: 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 6
Slide 7: For personal use only
. For personal use only • LARK Brand Restage on track for completion in late FY25 . • Awareness growth through meaningful partnerships in Australia and Brand advocacy in Asia • Occasion led and repeatable innovation driving brand and commercial outcomes • For Asian export business, focus is on activ
Slide 8: HY25 Investor Briefing
For personal use only HY25 INVESTOR BRIEFING 8
Slide 9: Gold medals across international awards programs in FY25
Continuing to grow LARK’s reputation with gold medals across leading international awards programs in FY25. For personal use only LARK 1911 – Single Malt Whisky LARK 1911 – Single Malt Whisky LARK Classic Cask - Single Malt LARK 1911 – Single Malt Whisky LARK Classic Cask - Single Malt - GOLD MEDAL
Slide 10: LARK Masterbrand
For personal use only LARK MASTERBRAND 10
Slide 11: New Product Development
NEW PRODUCT DEVELOPMENT • • For personal use only • • • 11
Slide 12: HY25 Investor Briefing
For personal use only HY25 INVESTOR BRIEFING 12
Slide 13: International Sales Momentum
INTERNATIONAL SALES MOMENTUM For personal use only • Growing Lark in international markets through a sustainable direct export business with in-market distributor partners is a key strategic priority. • In FY24, Lark signed its first distribution agreements in Asia, onboarding partners in Singapore,
Slide 14: International Sales Momentum (Global Travel Retail)
INTERNATIONAL SALES MOMENTUM For personal use only • GTR provides a unique opportunity to engage with Lark’s target audience, driving brand discovery and awareness. • As Australia’s Number 1 Luxury Single Malt Whisky – the GTR channel is important in the seeding of LARK to both domestic and internat
Slide 15: Domestic Leadership Position
DOMESTIC LEADERSHIP POSITION For personal use only • Lark’s internally managed Direct-to-Consumer (D2C) channels performed strongly in HY25, with Net Sales growth of $0.6 million driven by strong results in both Lark’s Ecommerce channel and Lark Hospitality venues. • In addition to being a sales dri
Slide 16: Domestic Leadership Position
DOMESTIC LEADERSHIP POSITION • Change in sales model and transition to Spirits Platform (SP) for Domestic B2B sales For personal use only completed on 1 August 2024. As Australia’s leading independent spirits distributor and the market leader in Ultra-Premium and above Single Malt, SP provides a str
Slide 17: HY25 Investor Briefing
For personal use only HY25 INVESTOR BRIEFING
Slide 18: For personal use only
▪ Strong Balance Sheet & Cash Position to support growth ambitions ▪ Cash & Term Deposits of $23.6 million, with For personal use only further funds from the Bothwell sale in March 2025 ▪ NAB $5 million committed debt facility, available to January 2028 ▪ Measured capital allocation to support our g
Slide 19: Pontville distillery development
For personal use only • Work ongoing to develop Pontville as the home of Lark, one which is reflective of Australia’s Number 1 Luxury Single Malt. • Key equipment and processes transferred from Cambridge, providing continuity of new make house style for our award-winning whisky. Development sees Dis
Slide 20: HY25 Investor Briefing
For personal use only HY25 INVESTOR BRIEFING 20
Slide 21: Profit & Loss
Profit & Loss • Net Sales Revenue for HY25 was $7.9m, up 7% or $0.5 million vs pcp A$'000 H1 FY25 H1 FY24 vs LY $ vs LY % • Increase in Net Sales driven by growth in D2C, export sales via in market For personal use only 1 Net Sales 7,880 7,386 494 7% distributors and GTR, partially offset by lower n
Slide 22: Balance Sheet
Balance Sheet • The successful placement announced in July 24 raised $24.4 million net of transaction costs. Total Cash $23.6 million, comprising Cash ($16.6 million) and A$'000 December-24 June-24 vs LY $ Cash term deposit ($7 million) at December 2024. Unmarketable Parcel For personal use only Cas
Slide 23: Cashflow
Cashflow • HY25 net operating cash outflows of $2.6 million vs $1.1 million in pcp A$'000 H1 FY25 H1 FY24 vs LY $ For personal use only Cash flows from operating activities • Focus on cash & capital discipline continues in the business, with HY25 net Receipts from customers 8,488 10,661 (2,173) oper
Slide 24: Underwriting Future Sales Growth
Underwriting Future Sales Growth • LARK’s whisky under maturation at 2.5 million litres at 43% ABV at For personal use only 31 December 2024 (FY24: 2.5m litres), with book value (at cost) of $59.0m • Whisky Bank allows us to optimise production in the short term, more closely aligning with current s
Slide 25: HY25 Investor Briefing
For personal use only HY25 INVESTOR BRIEFING 25
Slide 26: 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 26
Slide 27: The Restage Delivers
THE RESTAGE DELIVERS: For personal use only • CLEAR POSITIONING & PROPOSITION • DEPTH OF STORY & DISCOVERY. LEADING WITH A SENSE OF PLACE POSITIONING COMPLETE • APPEAL TO A BROADER AUDIENCE WITH STANDOUT • DELIVERS AGAINST EXPORT CONSUMER FORMAT EXPECTATIONS (700ML) PORTFOLIO COMPLETE • NAVIGATION &
Slide 28: LARK Future Brand Propositions
LARK FUTURE BRAND PROPOSITIONS & LARK TASMANIAN SINGLE MALT WHISKY FORTY SPOTTED TASMANIAN GIN *NOT TO SCALE
Slide 29: KURIO Tasmanian blended malt whisky
For personal use only • KURIO, Tasmanian blended malt whisky, 700ml, 40% ABV, RRP $120 • From the original creators of Tasmanian whisky, Lark • Whisky for the curious, by the curious – for those in search of the new & exciting • KURIO, Crimson Jam, blends exceptional Tasmanian single malts, uniquely
Slide 30: Investor Briefing - LARK Distilling Co.
For personal use only ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Investor Briefing - LARK Distilling Co. 30 30
Slide 31: Strategic priorities and progress
PRIORITY DESCRIPTION KPI TIMING PROGRESS LARK will build a globally ▪ LARK Single Malt Restage For personal use only recognized and differentiated By FY25 ▪ Lark Brand restage on schedule for delivery by end of (architecture, format etc) FY25. Customer & distributor engagement H2FY25. luxury Single
Slide 32: HY25 Investor Briefing
For personal use only HY25 INVESTOR BRIEFING 32
Slide 33: Outlook
• Lark Brand restage to be completed by the end of FY25 • Increased investment in A&P (>30% of Net Sales); finalisation of Lark Brand For personal use only restage and go-to-market assets to support Asian Export growth, and building brand awareness in all markets • Enhancements to Lark's cellar door
Slide 34: LARK Distilling Co.
LARK Distilling Co. x Q Z ti o am <x Ajuo asn yeuossed 104
Slide 35: Excise Treatment Across Sales Channels
In accordance with AASB 15 – Revenue from Contracts with Customers, statutory Excise Treatment Across Sales Channels: accounts must report both Revenue and Cost of Goods Sold (COGS) on a gross basis, inclusive of excise payments made to the ATO. These excise costs are For personal use only subsequen
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 412171673 investors@larkdistilling.com LARK MADE OF TASMANIA