Lark Distilling Posts 3% Revenue Rise, Losses Surge 148% in FY25
Lark Distilling Co. Ltd reported a 3% revenue increase to $17.17 million for FY25, driven by whisky sales growth and a major brand restage, while losses widened significantly due to increased marketing spend and operational investments.
- Revenue up 3% to $17.17 million, led by 16% growth in whisky sales
- Net loss after tax widened 148% to $11.32 million
- Successful $24.4 million equity raise strengthens balance sheet
- Completion of brand restage and consolidation at Pontville site
- Debt-free with $23.1 million cash and $57.2 million whisky inventory
Revenue Growth Amidst Strategic Transformation
Lark Distilling Co. Ltd has reported a modest 3% increase in revenue for the year ended 30 June 2025, reaching $17.17 million. This growth was primarily driven by a 16% rise in whisky sales, offsetting an 11% decline in gin revenue. The company credits this performance to the completion of a comprehensive brand restage and expanded international distribution, particularly across Asian markets and global travel retail channels.
Widening Losses Reflect Investment Phase
Despite top-line growth, Lark’s net loss after tax surged 147.8% to $11.32 million, compared to $4.57 million the previous year. The increased loss reflects higher marketing expenses, which rose by $2.4 million to $5.3 million, supporting brand repositioning and the launch of the new Kurio blended malt. Additionally, the transition to a distributor-led domestic sales model via Spirits Platform altered revenue recognition and compressed gross margins by 3.5 percentage points. Non-recurring costs, including a $0.99 million write-off of legacy assets and government grant income recognition, also influenced the bottom line.
Strengthened Balance Sheet and Operational Consolidation
Lark successfully completed a $24.4 million equity raising during the year, bolstered by a strategic partnership with Seppeltsfield Wines. This capital injection has fortified the company’s balance sheet, enabling continued investment in brand development and infrastructure. The company operates debt-free, maintaining $23.1 million in cash at year-end. A key operational milestone was the consolidation of distilling and production activities at the historic Pontville site, which will serve as Lark’s long-term brand home and production hub, enhancing efficiency and scalability.
Strategic Priorities and Outlook
Management remains focused on three strategic pillars – building long-term brand value, driving international sales momentum alongside domestic market leadership, and exercising cash and capital discipline. The brand restage, which has received positive feedback from consumers and trade partners, is expected to unlock significant future potential. Looking ahead to FY26, Lark plans to commence shipping the updated portfolio domestically in the first half, followed by a global launch in the second half, positioning the company for scalable growth.
Governance and Leadership Updates
The year also saw changes in the boardroom with the appointment of Stuart Gregor, a seasoned spirits industry executive known for scaling Four Pillars Gin, and the resignation of Laura McBain. The leadership team, led by CEO Satya Sharma, has been credited with executing the company’s transformation strategy amid a challenging market environment.
Bottom Line?
Lark’s FY25 results underscore a company in transition, investing heavily today to build a stronger, more scalable whisky brand for tomorrow.
Questions in the middle?
- How will the brand restage impact sales momentum and margins in FY26?
- What is the timeline and expected capacity impact of the Pontville site commissioning?
- How will the shift to distributor-led sales affect long-term profitability and cash flow?
