Lark Distilling reports weak whiskey sales

Tasmanian whiskey distiller Lark Distilling has revealed continuing weak sales in a business update for the quarter ended 30 June 2024.

The company reported net sales for Q4FY24 in line with earlier market updates, with Q4FY24 net sales revenue of $3.3 million and $14.0 million for FY24, down $0.7 million and $3.1 million respectively compared to the previous corresponding periods.

According to the company sales for quarter were impacted by a ‘known slowdown in the Chinese Indirect Export channel, soft trading conditions in domestic B2B market, and Lark hospitality venues, partially offset by stronger Direct Export, Global Travel Retail and Ecommerce sales’.

Lark CEO Sash Sharma said the fourth quarter had nonetheless been an important quarter for Lark, with the company achieving a number of important milestones for both its domestic and export businesses.

Sharma said: “Our direct export sales for Q4 and H2, were $0.3 million and $0.9 million respectively, with H2 sales offsetting more than half the shortfall in Chinese Indirect Export Channel of $1.6 million from H2FY23.

“Additionally, for our direct export business, stock has now cleared customs in all four markets, with a planned reorder from Indonesia shipped in Q1FY25.

“We have launch events planned for Singapore and Indonesia in Q1FY25, where the focus is to build awareness both with trade and direct consumers as well as increase distribution. ”

Export sales were made through initial shipments to new launch markets of Malaysia and the Philippines, with total H2 direct export sales to new Asian markets of $0.9 million.

Sharma said: “The performance of our nascent GTR (global travel retail) business was another highlight for FY24, achieving sales of $1.1 million.

“Domestically, transition work is progressing well in advance of the exciting ‘go-live’ on 1st August with our new domestic distribution partner, Spirits Platform.

“The Spirits Platform team are working closely, and very well with our existing Lark team to ensure a smooth handover.”

Sharma said work had begun on our Brand & Portfolio ‘restage’, with the appointment of creative agency LOVE which is experienced in the Luxury alcohol space.

“This exciting workstream will support our global expansion ambitions, positioning Tasmania as the epicentre of new world whisky, with Lark as the differentiated leader.”

Further reading:
Lark Distilling to spend $40m expanding whisky production

Picture: Lark Distilling