Lark Distilling has reported continued top-line growth in 1H FY26, with net sales revenue (after excise) rising 10 per cent to $8.7 million, as the Tasmanian whisky producer prepares for a coordinated domestic and international rollout of its restaged portfolio in the second half.
Whisky net sales were up 18 per cent on the prior corresponding period (pcp), with the company highlighting six consecutive quarters of net sales growth despite a “challenging industry backdrop”.
Growth was led by direct-to-consumer (D2C), global travel retail (GTR), and export distributor channels, partially offset by weaker domestic B2B reported sales.
Lark said D2C net sales increased 17 per cent to $4.2 million, supported by e-commerce growth of 33 per cent, while GTR net sales rose 17 per cent to $1 million.
Direct export net sales lifted to $1.3 million, up $0.8 million on pcp, reflecting expanded distribution across 10 Asian markets and initial shipments of the new portfolio.
Domestic B2B net sales fell 24 per cent to $2.3 million, which the company attributed to changes in the comparative-period sales model, shipment timing, and one-off transition effects. Lark said first-half depletion performance through Spirits Platform remained positive, with Lark whisky volumes up 9 per cent versus pcp.
Gross profit for the half rose two per cent to $5.1 million, with reported gross margin at 58 per cent. Lark said a non-cash historical fair value uplift tied to inventory acquired in the Pontville acquisition reduced gross profit by about $0.4 million and gross margin by about five percentage points in the period. Excluding that accounting impact, underlying gross margin was 63 per cent, compared with 64 per cent in pcp.
The company also pointed to cash and capital discipline, ending the half debt free with cash of $18.3 million as at 31 December 2025. Major capital projects are now largely complete, including the Pontville redevelopment, which increased distilling capacity to about 520kL at 43 per cent and removed production bottlenecks through automation and site improvements.
CEO, Stuart Gregor, said the business had built the foundations for the brand restage and now needed to convert that platform into sales momentum in 2H FY26, working with trade and distribution partners to support the launch.
For FY26, Lark said it expects ongoing net sales growth, driven by execution of the restaged brand and new portfolio launch, while acknowledging continued market challenges.
New CFO appointed
In a separate ASX announcement, Lark appointed Paul Bowker as CFO following an “extensive search process”. He starts on 2 March.
Bowker was previously co-founder and CEO of Brick Lane Brewing and earlier held CFO, general counsel and company secretary roles at ASX-listed LogiCamms.
