Lark Distilling Posts $5M Net Sales, Up 11% in Q2 FY26
Lark Distilling Co. has reported its sixth consecutive quarter of sales growth, with net sales rising 11% to $5 million in Q2 FY26, as it prepares to launch a refreshed brand portfolio domestically and internationally.
- Net sales up 11% to $5 million in Q2 FY26
- Ecommerce and global travel retail channels show strong growth
- Domestic B2B sales decline due to shipment timing
- Pontville production facility near completion, enhancing capacity
- Founder Bill Lark honoured with Order of Australia
Sustained Growth Amid Industry Challenges
Lark Distilling Co., Australia's leading luxury single malt whisky producer, has delivered its sixth consecutive quarter of top-line growth, reporting net sales of $5 million for the second quarter of fiscal 2026. This represents an 11% increase compared to the same period last year, underscoring the company's resilience despite a challenging industry backdrop.
Growth was notably driven by the direct-to-consumer ecommerce channel, which saw a 12% uplift to $2.4 million, and global travel retail sales, which rose 7% to $0.5 million, buoyed by strong demand at Australian airports. Direct export sales nearly tripled to $0.7 million, supported by shipments to key Asian markets including Singapore, China, and Malaysia ahead of a major brand relaunch.
Preparing for a Brand Transformation
The company is gearing up for a significant restage of its brand portfolio, scheduled for launch in export markets in the third quarter of FY26 and domestically in April 2026. This restage will introduce three new 700ml Lark whisky expressions with updated branding designed to appeal to the global luxury market. A differentiated travel retail range is also planned, expected to further accelerate international sales growth and reinforce Lark's domestic market leadership.
CEO Stuart Gregor highlighted the strategic importance of this initiative, noting that the restage is a key pillar in the company’s growth strategy. He expressed confidence that the refreshed portfolio will resonate with consumers worldwide, showcasing Tasmania’s unique whisky craftsmanship and natural resources.
Operational Advances and Financial Health
Operationally, Lark is nearing completion of its Pontville production facility, which promises improved safety, quality, and efficiency. The new single-site operation will remove previous production bottlenecks and increase annual distilling capacity to approximately 520,000 litres at 43% alcohol by volume, providing ample headroom for scaling as sales expand.
Financially, the company maintains a strong balance sheet with $18.3 million in cash as of December 31, 2025, alongside an undrawn $5 million credit facility. The whisky bank remains steady at 2.4 million litres, a strategic asset supporting future growth. Despite a 16% decline in domestic business-to-business sales due to shipment timing, underlying trade performance remains positive, with expectations for momentum to continue in the second half of the year.
Honouring a Legacy
Adding to the quarter’s highlights, founder Bill Lark was honoured as a Member of the Order of Australia for his contributions to the Australian whisky industry. His ongoing role as Global Ambassador, including recent engagements in Malaysia and Singapore, continues to bolster Lark’s international presence.
As Lark Distilling embarks on this new chapter, the combination of steady sales growth, operational enhancements, and a refreshed brand strategy positions the company well to capture further market share both at home and abroad.
Bottom Line?
With a robust cash position and a bold brand relaunch imminent, Lark Distilling is poised to deepen its footprint in the global luxury whisky market.
Questions in the middle?
- How will the new brand restage impact Lark’s sales trajectory in export markets?
- Can domestic B2B sales rebound following shipment timing issues?
- What role will the Pontville facility play in scaling production to meet demand?
