• International sales momentum and domestic leadership position
• Significant progress on Lark portfolio and brand restage
• Focus on cash and capital discipline

Lark Distilling Co. Ltd (ASX: LRK) reported its half year ended 31 December 2024 (HY25) results, highlighting international sales momentum, progress on the Lark brand restage, and continued focus on cash and capital discipline. Net sales revenue grew 7% to $7.9 million, driven by strong performance in D2C, GTR, and export sales, partially offset by lower domestic B2B sales. The company made significant progress on its Lark portfolio and brand restage, with updated brand positioning, identity, and packaging on track for completion by the end of FY25. Lark also increased activation plans with Asian distributors and appointed a regional brand ambassador for Asia. The company maintained its focus on cash and capital discipline, with a cash balance of $23.6 million at 31 December 2024 and an undrawn $5 million bank facility. The transition to the Pontville site as Lark's long-term production and brand home is ongoing, with capex spend of around $2.5-3 million planned for Q3 FY25.

Lark expects net sales growth in 2H FY25 (versus pcp) despite the P&L shift from the domestic distribution change, through GTR, DTC & Whisky Club, with Spirits Platform providing the platform to grow in time. The company plans to increase investment in advertising and promotion to over 30% of net sales to support the Lark brand restage and growth in Asian export markets.

Lark remains focused on building long-term brand value through the completion of the Lark brand restage by the end of FY25, increased investment in advertising and promotion, and enhancements to the Hobart cellar door offering. The company also plans to continue its focus on cash and capital discipline, with the transition to the Pontville site as Lark's long-term home.