• Net Sales up 10% vs prior year
• Domestic D2C sales up 23%, Global Travel Retail up 33%
• Asia Direct Export sales up 160% with initial shipment to China
• Flagship Pontville site development and commissioning largely complete

Lark Distilling Co. Ltd (ASX: LRK), Australia's No.1 Luxury Single Malt Whisky producer, has reported its Q1 FY26 results and provided a business update. The company recorded net sales of $3.7 million, up 10% compared to the prior corresponding period, reflecting continued operating momentum with five consecutive quarters of net sales growth. Domestic direct-to-consumer (D2C) sales grew 23% to $1.7 million, underpinned by strong ecommerce performance across specialty releases. Global travel retail (GTR) sales increased 33% to $0.4 million, aided by strong performance of the Mizunara Oak Rare Cask Whisky and promotional activities. Asia direct export sales surged 160% to $0.6 million, with an initial shipment of KURIO into China. Domestic business-to-business (B2B) sales declined 34% to $0.9 million, due to a change in the sales model and timing effects from the transition to the distributor model. The company continued to execute on its strategic priorities, with ongoing preparations for a portfolio brand restage scheduled for Q2 FY26 in export markets and Q3 FY26 domestically. The development of the flagship Pontville site is largely complete, with successful trial distilling commissioning. Lark also announced the appointment of Non-Executive Director Stuart Gregor as the new CEO, effective January 1, 2026. Gregor, a co-founder of Four Pillars Gin, brings extensive industry experience to lead Lark's global expansion.

Lark Distilling Co. Ltd expects to continue its growth momentum, with the upcoming launch of the restaged brand portfolio in export markets in Q2 FY26 and domestically from Q3 FY26. The company's strong balance sheet, with $20.0 million in cash as at 30 September 2025, provides strategic flexibility to support its expansion plans.

Lark Distilling Co. Ltd is well-positioned to capitalize on the significant efforts made by the team in recent years, with the incoming CEO, Stuart Gregor, expected to build on these foundations and leverage his insights to expand the LARK brand globally.