In a year that delivered Lark Distilling Co’s strongest top-line growth, it also wrote off $36.2 million in assets from its 2021 Pontville acquisition, pushing its statutory EBITDA loss to $19 million.
In FY26, the Tasmanian whisky maker reported net sales of $18 million, up 15.1 per cent on FY25 ($15.6 million), with $5 million booked in the June quarter.
The $36.2 million was $20.7 million goodwill impairment and a $15.5 million write-down of whisky inventory to net realisable value. Lark said the Shene whisky bank, part of the acquisition, carried a higher cost than Lark’s own whisky production.
This year, the company finished its redevelopment of Pontville, consolidating distilling, maturation, blending, cooperage and bottling onto a single site. The write-down puts a figure on the gap between what the company paid for third-party stock and what it can now make whisky for.
The company said neither charge affects its cash position or operating capability, describing both as a function of historic acquisitions rather than an indication of future operations.
Operating EBITDA loss widened to $4.5 million from a $4.2 million loss in FY25, which Lark attributed to continued spending on sales, marketing and international expansion. Marketing investment fell to 27 per cent of net sales from 34 per cent, with the prior year carrying the cost of the brand restage.
Normalised gross profit rose $0.8 million to $10.9 million, but gross margin fell 4.3 percentage points to 60.5 per cent on a channel mix shift toward export and global travel retail, and the effects of the portfolio change.
Channel performance
Export net sales grew 69 per cent to $1.8 million, with Lark now in 10 Asian markets and its first shipment into China completed. Global travel retail grew 43 per cent to $2.2 million, supported by new outlets at Changi Airport in Singapore and a permanent flagship fixture at Sydney Airport.
Domestic net sales rose 7.2 per cent to $13.9 million, with the ecommerce channel up 21.5 per cent to $3.4 million.
Balance sheet
Lark closed the year with $14.3 million in cash and no debt, down from $18.3 million at 31 December 2025. Total inventory stood at $49.4 million, including approximately 2.4 million litres of maturing whisky at 43 per cent ABV. Net operating cash outflow was $5.8 million, which the company said included a temporary $3.8 million working capital movement that has largely reversed since balance date.
Outlook
Lark Distilling CEO, Stuart Gregor, said the company had commissioned the Pontville distillery, launched the Signature whisky range and moved into new global travel retail outlets during the year.
“With a clean balance sheet and a strong cash position, we are well placed to build on this momentum, and I am confident FY27 will be a year to celebrate,” Gregor said.
FY27 priorities are to add distribution points in existing and new markets and lift the rate of sale at each. Domestically that runs through expanded distribution of the Signature range via Spirits Platform, alongside Lark’s owned ecommerce and hospitality channels. Global travel retail expansion continues across Asia-Pacific, with China the primary international focus and interest building in Europe. A LARK Club loyalty program launches during FY27.
