LARK Distilling Co. Ltd. (LRK) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to LAC Distilling's half-year FY26 results for the period ending 31 December 2025. Today we have LAC CEO Stuart Gregor and CFO Ian Short presenting. There will be opportunity at the end of the presentation to ask questions. Please submit your questions in the function at the bottom of the screen. I will now pass to Stu. Thanks, Mel. Good morning, everyone. Thanks for joining us here for Lark's half-year results. I'm personally quite honoured and very thrilled to be presenting my first set of results as Lark's CEO seven weeks into the job. In 2023, under the leadership of my predecessor, CEO Sash Sharma, Lark established three foundational strategic projects. So some financial highlights. The first half In the last few months, we have seen a significant increase in sales revenue of $8.7 million for the half, a 10% increase. net sales saw an 18% increase compared to the first half of FY25. Gross profit for the half was $5.1 million, an increase of 2%. Gross margins were 58%, and while these were down due to the utilisation of our higher-cost acquired inventory, underlying margins remained stable at 63%. Again, Ian will detail the utilisation of inventory and the fair value impact on our financial statements a little later. Our net operating cash outflows have improved by approximately $0.3 million, or 10%. Improved net operating cash outflows reflected stronger underlying performance driven by stronger sales, moderated distilling through the commissioning of Potville, and increased interest income earned on cash balances. These improvements were partially offset by temporary timing impacts. Cash and capital discipline remains one of our key priorities, and we ended the half with $18.3 million of cash, providing flexibility to pursue our growth ...