Mighty Craft Limited, behind brands such as Better Beer, Seven Seasons, 78 Degrees, Jetty Road and Kangaroo Island Spirits, has posted record sales revenue for the quarter ended 30 June 2022 of $23.2 million, up +161 % on Q1 FY21 and +20 % on Q3 FY22.
The healthy results from the ASX announcement were despite the disruptions in on-premise, also impacting the company’s own venues. Mighty Craft venues experienced the lowest trading quarter of the year, given the seasonal nature of venues. On the other hand, wholesale revenue grew significantly in Q4, with key growth drivers being Better Beer core lager and the launch of Ginger Beer and Better Beer Zero Alcohol. Better Beer generated $9.5m in sales for the quarter.
Other notable growth performers for the quarter were Jetty Road (+39%), Kangaroo Island Spirits (+54%) and 78 Degrees (+22%). Mighty Craft is pleased with the ongoing growth achieved this past quarter, especially given Q4 is seasonally the slowest quarter, and believes the business is in good stead for H1FY23 as it capitalises on stronger trading conditions as the weather improves.
Mighty Craft’s Managing Director, Mark Haysman, saiddespite the mixed performance of its venues and sales into the on-premise channels, he was delighted Q4 FY22 was another record sales quarter for the business buoyed by high-growth brands, Better Beer, Jetty Road, Kangaroo Island Spirits and 78 Degrees, including gains in new markets and the low/no category.
“During the quarter, we were delighted to secure the upcoming international launch of Better Beer into New Zealand and to also see our no/low alcohol offerings gain significant traction in the grocery supermarket segment. Our move into the low/no alcohol category is just one example of our strategy to quickly capitalise on emerging consumer trends and preferences by adapting and leveraging off our premium craft brands,” Haysman said.
The future looks bright for Mighty Craft whisky developments, with whisky under maturation at 334k litres versus the 300k litre target. In addition, the company’s Whisky Development Syndicate, launched on 30 March 2022, has been well received by syndicate investors and has successfully raised $3.8m to date. Proceeds from WDS will fund a significant portion of the Mighty Craft FY23 Whisky ambition at the Kangaroo Island Distillery.
“We have been focused this past quarter on preparing the business for a strong start to FY23, with volume targets exceeded for FY22, whilst also streamlining the business through implementing our cost reduction plan and non-core asset divestment program, all of which will enable the business to deliver ongoing and sustainable,” said Haysman.
“We have made significant steps this past quarter towards ensuring we are in good stead from a capital management perspective for FY23. The renegotiation of our Pure debt facility, the funds raised through the Whiskey Development Syndicate and our plans to divest our non-core assets will ensure we have the necessary funds to grow our business in a more simplified and focused format and continue to back the brand winners. I look forward to updating you further on our plans for FY23 at our full-year results.”
