Lark banks on luxury drinkers to get it out of the red
The new chief executive of Tasmanian whisky company Lark Distilling Co expects high-end drinkers to keep spending in tougher economic times in Australia, as he banks on an expansion into Asia to reverse a tumble into the red.
Satya Sharma, who was an executive for 10 years with Scottish whisky giant William Grant & Sons in Singapore, China and the United Kingdom, took the helm of the troubled Lark in May and is optimistic about a revival after the group sank to a bottom-line loss of $4.91 million in 2022-23.
Lark Distilling Co CEO Satya Sharma: “Luxury tends to be a lot more resilient.”
The company had been in the spotlight in early 2022 after the sudden resignation of Geoff Bainbridge, who exited before a video circulated of him in his underwear smoking crystal methamphetamine. Mr Bainbridge claimed he was the victim of an extortion scam.
Mr Sharma said luxury brands are usually better performers in economic downturns than mainstream brands.
“Luxury tends to be a lot more resilient,” he said on Tuesday. “I think they will continue to do so.”
But Mr Sharma emphasised there was still uncertainty in the economy.
“I don’t have that crystal ball,” he said.
The company suffered a loss of $4.91 million for the 12 months ended June 30, compared with a loss of $470,000 a year earlier. Net sales revenue dropped by 16 per cent to $17 million for 2022-23.
Mr Sharma pointed to the improvement in gross profit margins to 68.9 per cent from 66.5 per cent as a good signpost. Lark’s bottom line was dented by $2.23 million in one-offs from restructuring costs and write-offs of obsolete non-whisky products.
Lark’s share price lifted by about 7 per cent by noon on Tuesday to $1.56. Former Bellamy’s infant formula boss Laura McBain came in
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