ASX-listed Lark Distilling Co. has reported growth in the fifth consecutive quarter, posting net sales of $3.7 million in Q1 FY26, up 10 per cent year-on-year. The company’s first quarter showed business momentum as it prepares for a brand relaunch in 2026.
Domestic direct-to-consumer (D2C) sales rose 23 per cent to $1.7 million, driven by strong e-commerce performance and the success of specialty releases such as Mizunara Oak Rare Cask and Dark Lark whiskies. Global travel retail (GTR) sales increased 33 per cent to $0.4 million, buoyed by in-airport tastings and promotional activations.
But business-to-business (B2B) domestic sales fell 34 per cent to $0.9 million, largely reflecting the transition to a distributor model with Spirits Platform in August 2024.
And meanwhile, Asia direct exports surged 160 per cent to $0.6 million following the first shipment of Lark’s blended malt Kurio into China.
The distiller is seeing growing trade momentum across Southeast Asia, supported by new distribution agreements and brand-building initiatives. Singapore continues to lead performance, with a trade incentive program and ambassador-led engagement ahead of Lark’s restaged brand launch in April 2026. The company also secured prime activation space at Sydney Airport to align with the upcoming domestic rollout.
The company’s flagship Pontville Distillery redevelopment is nearing completion, with full commissioning due in Q2FY26. The transition to automated bottling via a third-party partner is expected to reduce freight and packaging costs while boosting production scalability. Lark’s whisky bank remains steady at approximately 2.4 million litres under maturation.
Lark ended the quarter with $20 million in cash, including $11 million in term deposits, and an undrawn $5 million bank facility. Operating cash outflows were $1.5 million, while investing outflows totalled $1.4 million, primarily for the Pontville site and Hobart Cellar Door redevelopment.
Outgoing CEO Sash Sharma said Lark’s strategic roadmap had delivered five consecutive quarters of growth and set the business up for scalable expansion. From 1 January 2026, non-executive director and industry veteran Stuart Gregor – co-founder of Four Pillars Gin – will take over as CEO.
“Stu brings 25 years of industry experience and a deep understanding of the Lark brand,” Sharma said. “He’s the ideal leader to build on our strong foundations and accelerate our global ambitions.”
