Highlights

  • Net sales of A$3.5 million fell 4.5 per cent, which the company attributed mainly to the timing of international orders.
  • Direct-to-consumer sales rose 16.4 per cent to A$2.0 million, while business-to-business sales fell 7.5 per cent to A$0.9 million.
  • Global travel retail grew 32.3 per cent to A$0.6 million, while export sales slid to about A$0.05 million.
  • Closing cash of A$12.923 million sits beside an undrawn A$5 million facility, and the company estimated 15.5 quarters of funding.

At home, Lark is growing. Abroad, orders went quiet. Lark Distilling (ASX:LRK), the Tasmanian whisky producer, reported on 28 October 2026 that net sales for the quarter ended 30 September 2026 were A$3.5 million, down 4.5 per cent on the prior comparable period. The company pointed mainly to the timing of international orders. Customer receipts were A$6.9 million, and closing cash was A$12.9 million with an undrawn A$5 million bank facility.

Domestic sales

Net domestic sales were A$2.9 million, up 7.9 per cent. Direct-to-consumer sales of A$2.0 million, up 16.4 per cent, made up roughly two-thirds of that total, while business-to-business sales of A$0.9 million were down 7.5 per cent. The company said the business-to-business result reflected the timing of shipments to its distribution partner, Spirits Platform.

International sales

Net international sales were A$0.6 million, down 37.7 per cent. Global travel retail, also A$0.6 million, was up 32.3 per cent. Export sales were only about A$0.05 million, compared with 15 per cent of sales in the prior comparable period. Lark said export was held back by a delayed rollout in China, the onboarding of a new distributor, and the timing of replenishment orders in other Asian markets.

Cash flow

The Appendix 4C shows cash inflows of A$7.118 million, including receipts from customers of A$6.923 million against A$5.109 million in the June quarter. Outflows rose to A$8.276 million from A$6.337 million, driven mainly by manufacturing and operations spending of A$3.379 million, up from A$1.470 million. Advertising and marketing cost A$1.452 million and staff A$2.203 million. Net operating cash outflow was A$1.158 million, slightly better than A$1.228 million a quarter earlier.

Investing outflow was A$76,000, and financing outflow, being lease payments, was A$156,000. Cash at quarter end was A$12.923 million, made up of A$1.923 million in bank balances and A$11.0 million in call deposits. The undrawn facility is with National Australia Bank and expires in January 2028. Related-party payments were A$98,000, including A$15,000 of office rent and A$21,000 of production purchases from entities associated with non-executive directors.

Brand and inventory

Chief executive Stuart Gregor said brand investment is gaining traction. According to the report, prompted awareness rose from 8 per cent to 10 per cent and consideration from 3 per cent to 5 per cent over six months. The whisky bank, the stock of maturing spirit the company holds, was about 2.4 million litres.

Points to note

The report presents the 4.5 per cent fall in net sales as mainly a timing effect from international orders rather than a change in domestic demand. It does not quantify how much of the gap it expects to reverse, offer guidance, or forecast when export sales will recover. Higher manufacturing spending is the main reason operating cash outflow was similar to the prior quarter despite stronger receipts.