LARK DISTILLING CO. LIMITED (LRK)
Share Price Analysis and Chart

29/08/2024

1

Buy

$3.00

160.87%

Lark Distilling's FY24 results, featuring an earnings loss on an -18% fall in net sales, was revealed at the company’s trading update in July, although the formal results release provided some more colour, Ord Minnett notes.

The fall in net sales was largely a result of some unsustainable comparable numbers that were driven by limited-release sales and indirect China exports, although domestic demand also suffered from widespread consumer caution on spending.

From here, with the recent completed $25m capital raising, Ord Minnett sees the company well-positioned to drive offshore expansion of its brand and start to exploit its substantial 2.5m litre whiskey bank.

Buy and $3.00 target retained.

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04/11/2024

1

Speculative Buy

$1.50

30.43%

Canaccord Genuity observes Lark Distilling Co's 1Q25 results show net sales of $3.4m, up 7% year-on-year, driven by stronger direct-to-consumer and export sales despite softer B2B performance.

The recent equity raising reduced debt exposure, with cash reserves now at $25.6m. Management is focusing on growth initiatives including brand restaging and expanding export channels.

The broker incorporates higher operating costs for brand investments, lowering EBITDA and net profit expectations for FY25/FY26.

Speculative Buy rating. Target is lifted to $1.50 from $1.20.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -6.00 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -6.00 cents.