Lark Distilling Co. Ltd. (LRK) AI Stock Analysis

• Market Cap: AU$66.13M
• Dividend Yield: N/A
• Average Volume (3M): 23.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 2.62%
• EPS Growth: -85.79%
• Country: AU
• Employees: 8
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): -0.08
• Shares Outstanding: 106,667,336
• 10 Day Avg. Volume: 15,073
• 30 Day Avg. Volume: 23,904
• PEG Ratio: -0.05
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 3.86
• P/FCF Ratio: -9.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: AU$0.50 ▼(-19.35% Downside)

Lark Distilling Co. Ltd. faces significant challenges, primarily due to its poor financial performance and bearish technical indicators. The company's negative profitability and cash flow issues are compounded by a negative P/E ratio, making it less attractive from a valuation standpoint. Despite a stable balance sheet, the overall outlook remains cautious.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market presence and demand for Lark Distilling's products, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests minimal financial risk and provides the company with flexibility to invest in growth opportunities.

Gross Profit Margin

A strong gross profit margin indicates efficient production processes, allowing the company to maintain profitability despite challenges.

Negative Factors

Profitability Issues

Persistent profitability issues hinder the company's ability to generate sustainable earnings, impacting long-term financial health.

Cash Flow Challenges

Negative cash flow indicates difficulties in sustaining operations and funding growth, which could strain financial resources over time.

Negative Return on Equity

A negative return on equity suggests inefficiencies in using shareholder funds to generate profits, which could deter potential investors.

Lark Distilling Co. Ltd. Business Overview & Revenue Model

Company Description

Lark Distilling Co. Ltd. (LRK) is a premium Australian spirits company specializing in the production of high-quality whisky and other distilled beverages. Founded in Tasmania, Lark is renowned for its artisanal approach to distillation, leveraging local ingredients and traditional methods to create distinctive and flavorful spirits. The company operates within the alcoholic beverage sector, focusing primarily on whisky production but also exploring other spirit categories, catering to both domestic and international markets.

How the Company Makes Money

Lark Distilling Co. Ltd. generates revenue primarily through the sale of its spirits, with key revenue streams including direct sales to consumers through its own distillery and online platforms, as well as distribution through retail partners and international wholesalers. The company capitalizes on the growing demand for craft spirits, leveraging its brand reputation and unique product offerings to attract both connoisseurs and casual drinkers. Additionally, Lark engages in strategic partnerships with bars, restaurants, and liquor retailers to enhance its market presence and expand its customer base. Special releases, limited editions, and collaborations with other brands also contribute to its earnings, alongside tours and tastings at its distillery, which create additional revenue opportunities while promoting brand loyalty.

Lark Distilling Co. Ltd. Financial Statement Overview

Summary

Lark Distilling Co. Ltd. shows a mixed financial performance. While revenue growth is positive at 5.77% and the balance sheet is stable with low leverage, the company struggles with profitability, evidenced by a negative net profit margin of -65.93% and negative cash flow. The strong equity position and gross profit margin provide some stability, but overall financial health is weak.

Income Statement

Lark Distilling Co. Ltd. shows a mixed performance in its income statement. The company has experienced a slight revenue growth of 5.77% in the most recent year, but it continues to struggle with profitability, as evidenced by a negative net profit margin of -65.93% and negative EBIT and EBITDA margins. The gross profit margin is relatively healthy at 57.50%, indicating some efficiency in production, but the overall profitability is hampered by high operating expenses.

Balance Sheet

The balance sheet of Lark Distilling Co. Ltd. reflects a stable financial position with a low debt-to-equity ratio of 0.018, suggesting minimal leverage and financial risk. However, the return on equity is negative at -9.72%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is strong, showing that a significant portion of the company's assets is financed by equity.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating cash flow and free cash flow. Despite a positive free cash flow growth rate of 16.66%, the company struggles with cash flow sustainability, as indicated by a negative operating cash flow to net income ratio. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.23M	17.17M	16.73M	19.88M	24.34M	16.54M
Gross Profit	9.59M	9.87M	9.46M	3.48M	8.49M	5.46M
EBITDA	-5.37M	-4.66M	-3.85M	-5.05M	803.87K	1.52M
Net Income	-5.37M	-11.32M	-4.57M	-4.91M	-470.40K	3.44M
Balance Sheet
Total Assets	133.69M	126.06M	110.63M	116.14M	121.59M	60.37M
Cash, Cash Equivalents and Short-Term Investments	23.57M	23.11M	2.36M	7.16M	16.10M	7.65M
Total Debt	1.93M	2.07M	2.19M	4.59M	6.68M	6.75M
Total Liabilities	9.06M	9.63M	9.26M	11.46M	12.84M	9.98M
Stockholders Equity	124.62M	116.43M	101.36M	104.68M	108.75M	50.40M
Cash Flow
Free Cash Flow	-6.13M	-7.15M	-4.79M	-6.27M	-9.97M	-7.16M
Operating Cash Flow	-5.74M	-2.92M	-4.22M	-5.45M	-7.72M	-6.38M
Investing Cash Flow	-7.11M	65.00K	-237.03K	1.75M	-39.50M	-637.10K
Financing Cash Flow	23.89M	23.60M	-348.80K	-5.24M	55.66M	8.54M

Lark Distilling Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LRK, the sentiment is Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.68, and below the 200-day MA of 0.78, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LRK.

Lark Distilling Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRM	66 Neutral	AU$46.16M	6.62	29.12%	―	2.63%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EDV	60 Neutral	AU$6.54B	15.30	11.20%	5.16%	-2.04%	-16.79%
MBH	54 Neutral	AU$38.08M	-1.58	-31.14%	―	-15.07%	29.45%
LRK	43 Neutral	AU$66.13M	-5.52	-10.39%	―	2.62%	-85.79%
TSI	42 Neutral	―	―	―	―	―	―

Lark Distilling Co. Ltd. Corporate Events

Lark Distilling Co. Successfully Concludes 2025 AGM with All Resolutions Carried

Lark Distilling Co. Ltd. held its 2025 Annual General Meeting, where all resolutions, including the adoption of the remuneration report and the re-election of directors, were successfully carried. The approval of equity securities under the company’s Equity Incentive Plan was also confirmed, indicating strong shareholder support and potentially positive implications for the company’s future growth and strategic initiatives.

Lark Distilling Co. Ltd Reports Strong Growth and Strategic Developments in 2025

Lark Distilling Co. Ltd reported a pivotal year in 2025, achieving a 12% growth in net sales and a strategic partnership with Seppeltsfield Wines, which secures barrel supply and opens new opportunities for premium whisky innovation. The company completed a significant brand restage, enhancing its market potential, and expanded its international sales, particularly in Asia and Global Travel Retail. Despite disappointing share price performance, Lark’s strengthened operations and growth strategy position it well for future success, with Stuart Gregor set to take over as CEO in January 2026.

Lark Distilling Co. Ltd Expands Market Presence with New Securities Issuance

Lark Distilling Co. Ltd has announced the issuance of 44,333 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code LRK. This move is part of the company’s ongoing efforts to enhance its market presence and provide value to its stakeholders by expanding its financial base and increasing liquidity in its shares.

Lark Distilling Co. Ltd Reports Strong Quarterly Growth and Strategic Advancements

Lark Distilling Co. Ltd reported a strong performance for the quarter ending September 2025, with net sales increasing by 10% compared to the previous year. The company saw significant growth in direct-to-consumer sales and international exports, particularly in Asia, despite a decline in domestic business-to-business sales due to a transition in sales models. The company is advancing its strategic priorities, including a brand restage and expansion of its flagship Pontville site. Additionally, Lark is undergoing a leadership transition with Stuart Gregor set to become CEO in January 2026, bringing extensive industry experience to further drive the company’s growth.

Lark Distilling Co. Announces 2025 Annual General Meeting

Lark Distilling Co. Ltd has announced its 2025 Annual General Meeting, scheduled for November 19, 2025, to be held as a hybrid meeting. This announcement is significant for stakeholders as it outlines the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its market position and investor relations.

Lark Distilling Co. Issues Shares to Employees, Reinforcing Market Position

Lark Distilling Co. announced the issuance of 528,928 ordinary fully paid shares to eligible employees without disclosure under Part 6D.2 of the Corporations Act. This move demonstrates the company’s compliance with relevant legal provisions and its commitment to rewarding employees, potentially enhancing stakeholder confidence and reinforcing its market position.

Lark Distilling Co. Ltd. Announces Quotation of New Securities on ASX

Lark Distilling Co. Ltd. announced the quotation of 528,928 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code LRK, effective from September 30, 2025. This move is part of a previously announced transaction, potentially enhancing the company’s market presence and providing additional liquidity for stakeholders.

Lark Distilling Co. Announces Proposed Securities Issue

Lark Distilling Co. Ltd. announced a proposed issue of 528,928 ordinary fully paid securities as part of a placement or other type of issue. This move is expected to enhance the company’s capital base, potentially supporting its operational growth and market expansion strategies. The issuance of these securities, pending approval and quotation on the ASX, could have significant implications for the company’s financial health and its stakeholders.