Lark Distilling net sales fell 4.5 per cent to $3.5 million in the September quarter, ending eight consecutive quarters of growth, as export sales stalled while it brings on a new distributor in China.
Export sales were $50,000, down from 15 per cent of sales in the prior corresponding period, when Lark shipped an initial pipefill order. Lark said replenishment shipments to other Asian markets were also delayed. Total international sales fell 37.7 per cent to $0.6 million.
Lark CEO, Stuart Gregor, said exports were behind expectations.
“The China rollout, including onboarding a new distribution partner, has taken longer than planned,” Gregor said.
Global travel retail partly offset the decline, rising 32.3 per cent to $0.6 million, helped by new distribution points including Singapore’s Changi Airport.
Domestic net sales rose 7.9 per cent to $2.9 million. Direct-to-consumer sales, covering Lark’s hospitality venues and its own ecommerce, grew 16.4 per cent to $2 million. Business-to-business sales fell 7.5 per cent to $0.9 million, which Lark put down to the timing of shipments to distributor Spirits Platform after a strong end to FY26.
The company spent $1.16 million on operations in the quarter. Customer receipts jumped to $6.9 million, up from $4.8 million in the June quarter, as it collected on strong late-FY26 sales, including to The Whisky Club. Manufacturing and operating payments more than doubled to $3.4 million, reflecting excise and supplier payments on a large payables balance at 30 June, as well as inventory and packaging purchases.
Advertising and marketing spend held at $1.5 million as Lark continues to back its Signature range. Gregor said prompted brand awareness in Australia had risen from 8 to 10 per cent over six months, and consideration from 3 to 5 per cent.
Cash fell to $12.9 million from $14.3 million, and Lark has an undrawn $5 million NAB facility. Its whisky bank remains at about 2.4 million litres.
Lark posted FY26 net sales of $18 million, up 15 per cent, after a 44 per cent jump in the June quarter.
