Mighty Craft’s revenue for Q3 FY22 was up 105 per cent compared to this time last year with $19.4 million in takings for the quarter, including sales for the wildly successful Better Beer of $7.8 million.
The business’ key growth driver, Better Beer is on track to have sold 4 million litres in FY22 and March was a record sales month for the brand at $3.4 million. Seven Seasons doubled its sales and Kangaroo Island Spirits grew by 19 per cent when compared to Q3 FY21. With the new KIS Distillery now open and distribution deals in place, Mighty Craft expect further growth next quarter.
Mighty Craft continued to feel the pinch of COVID disruptions with venue sales accounting for just 25 per cent of total business sales. They were 45 per cent in Q3 FY21. Keg sales also declined by 4 per cent.
To fund its growth strategy, Mighty Craft is now exploring a number of pathways including the divestment of its non core assets, some of which it says could be finalised by the financial year’s end. The business will also shift to a leaner operating model to support its “ongoing focus on profit improvement through cost reduction and shifting focus and resources towards priority brands”.
The Mighty Craft executive have been on an investor marketing roadshow this month and the business announced the Whisky Development Syndicate – the funding initiative to accelerate its Whisky production – at the end of March. Capital raising for the WDS is ongoing and Mighty Craft now has 273K litres of whisky under maturation.
Mighty Craft’s Managing Director, Mark Haysman said, “Q3 FY22 was another record sales quarter for the business despite the ongoing COVID impacts to both our own venues and sales into the on-premise channels. Whilst this has caused a short-term impact from a profit mix perspective, we view this as temporary and expect hospitality to continue to bounce back to pre-COVID levels…
“We will continue to simplify and focus the business, back the brand winners and divest non-core assets, which will also help us from a capital management point of view.”
