Key Highlights

  • Net sales were A$3.5 million, down 4.5 per cent, which the company attributed mainly to the timing of international orders.
  • Domestic net sales rose 7.9 per cent to A$2.9 million, with direct-to-consumer sales up 16.4 per cent, while net international sales fell 37.7 per cent to A$0.6 million.
  • Closing cash was A$12.923 million with an undrawn A$5 million bank facility, and funding was estimated at 15.5 quarters.

Quarter headline

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 attributed the decline 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 were A$2.0 million, up 16.4 per cent, while business-to-business sales were A$0.9 million, down 7.5 per cent. The company said the business-to-business result was affected by 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 sales were A$0.6 million, 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 total cash inflows of A$7.118 million, including receipts from customers of A$6.923 million, compared with 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 was A$1.452 million and staff costs A$2.203 million. Net operating cash outflow was A$1.158 million, slightly better than A$1.228 million in the prior quarter.

Investing outflow was A$76,000 and financing outflow, being lease payments, was A$156,000. Cash at the end of the quarter was A$12.923 million, made up of A$1.923 million in bank balances and A$11.0 million in call deposits. The company estimated 15.5 quarters of funding at the current rate of cash use. The undrawn facility is with National Australia Bank and expires in January 2028. Related-party payments of A$98,000 were reported, 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, with prompted awareness rising from 8 per cent to 10 per cent and consideration from 3 per cent to 5 per cent over six months, according to the report. The company said its whisky bank, the stock of maturing spirit it holds, was about 2.4 million litres.

Sales mix in context

Direct-to-consumer sales of A$2.0 million made up roughly two-thirds of domestic net sales of A$2.9 million, which means the channel carrying the fastest growth is also the largest. Global travel retail, the international channel that grew, is now almost the whole of the international line, since export was only about A$0.05 million. 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, though it does not quantify how much of the gap it expects to reverse.

Points to note

The quarterly figures are a single period and the report does not give guidance. The increase in manufacturing spending compared with the June quarter is a main reason operating cash outflow was similar despite higher receipts. The company's own discussion ties the international decline to timing and distributor changes, but the report does not forecast when export sales will recover. Readers should also note that the Appendix 4C contains some internal inconsistencies, including a net change in cash line that matches the opening balance rather than the net decrease of A$1.39 million, although the closing balance of A$12.923 million is consistent with the movement.