Lark Distilling Co. Ltd. (AU:LRK)
ASX:LRK
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Lark Distilling Co. Ltd.
(Sydney:LRK)
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Rating:54Neutral
Price Target:
AU$0.87
▲(39.84% Upside)
Action:ReiteratedDate:02/24/26
The score is held back primarily by weak profitability and negative cash flow in the financial statements. Offsetting factors include a strong, low-debt balance sheet and a constructive earnings-call outlook centered on DTC, export/GTR expansion, and execution milestones, while technicals show improving momentum. Valuation remains a drag due to losses and no stated dividend yield.
Positive Factors
Low leverage and strong equity
A very low debt load and strong equity base reduce financial risk and provide durable funding optionality. With cash reserves reported and no leverage, management can fund marketing, Pontville commissioning and modular capacity expansion, and absorb near-term cash outflows while pursuing growth.
Negative Factors
Weak profitability and negative margins
Deep, persistent negative margins and losses signal structural profitability issues. Despite healthy gross margins, high operating expenses and marketing intensity compress returns and drive negative ROE, meaning shareholder capital is not yet generating sustainable earnings and must improve to justify growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and strong equity
A very low debt load and strong equity base reduce financial risk and provide durable funding optionality. With cash reserves reported and no leverage, management can fund marketing, Pontville commissioning and modular capacity expansion, and absorb near-term cash outflows while pursuing growth.
Read all positive factors
Lark Distilling Co. Ltd. (LRK) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$91.28M
Dividend YieldN/A
Average Volume (3M)23.90K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth2.62%
EPS Growth-85.79%
CountryAU
Employees8
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)-0.83
Shares Outstanding107,387,340
10 Day Avg. Volume15,073
30 Day Avg. Volume23,904
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.09Price Target Upside75.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.04
Revenue Forecast (FY)AU$18.01M
Lark Distilling Co. Ltd. Business Overview & Revenue Model
Company Description
Lark Distilling Co. Ltd engages in the production, marketing, distribution, and sale of craft spirits. The company operates through three segments: Whisky, Gin, and Other. It also offers brandy and liqueurs. The company was formerly known as Austr...
How the Company Makes Money
Lark Distilling makes money primarily by selling its branded spirits, led by Australian whisky, through a mix of channels that typically include wholesale distribution (selling to retailers, bars, and restaurants) and direct-to-consumer sales (suc...
Lark Distilling Co. Ltd. Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 31, 2026
Earnings Call Sentiment Positive
The call conveys a predominantly positive operational and strategic picture: solid top-line growth (10% net sales, 18% whisky sales), strong D2C and e-commerce momentum, completion and commissioning of the Pontville site, a sizeable whisky bank and a healthy cash position ($18.3m, debt-free). Management has executed a major brand restage with clear go-live dates and has secured GTR and export distribution momentum. The principal negatives are accounting-driven margin compression from the utilization of higher-cost acquired inventory (noncash fair-value uplift) and near-term timing effects on domestic B2B sales and cash receipts. These lowlights are explained as temporary or noncash in nature and management provides disclosure and an underlying margin metric (63%) to clarify performance. Overall, the positive operational progress, capacity improvements and brand initiatives outweigh the accounting and timing headwinds.Positive Updates
Revenue Growth
Net sales revenue of $8.7 million for H1 FY26, up 10% on the prior corresponding period; whisky net sales rose 18% versus H1 FY25.
Negative Updates
Reported Gross Margin Compression from Acquired Inventory
Reported gross margins decreased to 58% (down ~5 percentage points) due to utilization of higher-cost acquired inventory acquired in the Pontville acquisition; this generated a roughly $0.4 million reduction in gross profit. Management reports an underlying margin excluding the noncash fair-value uplift of ~63%.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Net sales revenue of $8.7 million for H1 FY26, up 10% on the prior corresponding period; whisky net sales rose 18% versus H1 FY25.
Read all positive updates
Company Guidance
Guidance focused on a coordinated H2 relaunch and measured growth: DTC go‑live 26 March 2026 with domestic roll‑out from late April and GTR activations from May, continued export expansion (initial shipments to 7 of 10 Asian markets) supported by a December CoLab GTR agreement; management expects elevated, upfront marketing investment in H2 before operating cash flow turns positive in FY27. Key metrics cited: H1 net sales $8.7m (+10% y/y) with whisky sales +18%, gross profit $5.1m (+2%) and reported gross margin 58% (underlying margin 63% excluding non‑cash fair‑value uplift), cash $18.3m, improved net operating cash outflows ≈$0.3m (≈10%), D2C net sales $4.2m (+17%) with e‑commerce +33%, GTR $1.0m (+17%), export $1.3m (+$0.8m), B2B $2.3m, inventory book $65.2m (cost $48.6m + $16.6m fair‑value uplift from acquired inventory of ~480,000 L, ≈<20% of a 2.4m L whisky bank), Pontville capacity ~520,000 L at 43% ABV (current planned distilling ~100,000 L), modular expansion optionality to ~800,000 L, marketing 23% of net sales (down from 27%), government grant income $0.6m recognized, and the company remains debt‑free.Lark Distilling Co. Ltd. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.79M | 17.17M | 16.73M | 19.88M | 24.34M | 16.54M |
| Gross Profit | 6.46M | 9.87M | 9.46M | 3.48M | 8.49M | 5.46M |
| EBITDA | -4.29M | -4.66M | -3.85M | -5.05M | 803.87K | 1.52M |
| Net Income | -9.74M | -11.32M | -4.57M | -4.91M | -470.40K | 3.44M |
Balance Sheet | ||||||
| Total Assets | 122.62M | 126.06M | 110.63M | 116.14M | 121.59M | 60.37M |
| Cash, Cash Equivalents and Short-Term Investments | 18.30M | 23.11M | 2.36M | 7.16M | 16.10M | 7.65M |
| Total Debt | 3.85M | 2.07M | 2.19M | 4.59M | 6.68M | 6.75M |
| Total Liabilities | 7.02M | 9.63M | 9.26M | 11.46M | 12.84M | 9.98M |
| Stockholders Equity | 115.60M | 116.43M | 101.36M | 104.68M | 108.75M | 50.40M |
Cash Flow | ||||||
| Free Cash Flow | -7.93M | -7.15M | -4.79M | -6.27M | -9.97M | -7.16M |
| Operating Cash Flow | -2.66M | -2.92M | -4.22M | -5.45M | -7.72M | -6.38M |
| Investing Cash Flow | 5.21M | 65.00K | -237.03K | 1.75M | -39.50M | -637.10K |
| Financing Cash Flow | -817.27K | 23.60M | -348.80K | -5.24M | 55.66M | 8.54M |
Lark Distilling Co. Ltd. Technical Analysis
Positive
0.62
Price Trends
0.73
Positive
0.67
Positive
0.73
Positive
Market Momentum
0.04
Negative
65.43
Neutral
89.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LRK, the sentiment is Positive. The current price of 0.62 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.73, and below the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 89.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LRK.
Lark Distilling Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$55.39M | 1.39 | 28.29% | ― | 2.63% | ― | |
70 Outperform | AU$5.80B | 6.65 | 9.59% | 5.12% | -2.04% | -16.79% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
54 Neutral | AU$91.28M | -18.17 | -8.39% | ― | 2.62% | -85.79% | |
46 Neutral | AU$34.94M | 22.20 | -53.68% | ― | -15.07% | 29.45% |
* Consumer Defensive Sector Average
AU:LRK
Lark Distilling Co. Ltd.
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Lark Distilling Co. Ltd. Corporate Events
Lark Distilling Director Converts Performance Rights to Shares
Mar 22, 2026
Lark Distilling Co. has disclosed a change in the interests of director David Dearie, in line with ASX listing rules. The filing outlines an internal equity adjustment rather than a cash transaction, reflecting the operation of the company’s...
Lark Distilling Applies to Quote 420,000 New Shares on ASX
Mar 22, 2026
Lark Distilling Co. Ltd has applied for quotation on the ASX of 420,000 new fully paid ordinary shares, issued on March 23, 2026. The additional securities arise from the exercise or conversion of existing options or other convertible instruments,...
Lark Distilling Director Increases Indirect Shareholding via Family Trust
Mar 15, 2026
Lark Distilling Co. Ltd has disclosed a change in the relevant interests of director Stuart Gregor, who has increased his indirect shareholding in the company. Through Netwealth Investments Ltd as trustee for the Gregor Family Trust, Gregor acquir...
Lark Distilling Lifts Sales and Cash Ahead of Global Whisky Portfolio Launch
Feb 23, 2026
Lark Distilling reported net sales of $8.7 million for the half year to 31 December 2025, up 10% with whisky net sales rising 18%, driven by strong direct-to-consumer, export and travel retail growth despite weaker domestic B2B revenue. Export sal...
Lark Distilling Narrows Half-Year Loss Despite Net Asset Decline
Feb 23, 2026
Lark Distilling Co. Ltd reported a 7% increase in revenue from ordinary activities to $9.15 million for the half-year ended 31 December 2025, while its net loss after tax narrowed by 65% to $0.84 million compared with the prior corresponding perio...
Lark Distilling appoints new CFO to drive next phase of growth
Feb 22, 2026
Lark Distilling Co. Ltd. has appointed Paul Bowker as its new Chief Financial Officer, effective 2 March 2026, following an extensive search process. Bowker brings significant leadership and finance experience from his roles as co-founder and CEO ...
Lark Distilling Extends Growth Streak as Asian Exports Surge and Brand Restage Nears
Jan 28, 2026
Lark Distilling reported its sixth consecutive quarter of top-line growth, with Q2 FY26 net sales up 11% to $5.0 million and first-half sales up 10% to $8.7 million, underpinned by strong domestic ecommerce-driven D2C growth, rising global travel ...
Lark Distilling Issues 484,005 Unquoted Performance Rights Under Incentive Scheme
Jan 18, 2026
Lark Distilling Co. Ltd has notified the market of the issue of 484,005 unquoted performance rights under its employee incentive scheme, effective 19 January 2026. These securities, which are not intended to be quoted on the ASX, form part of the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.