- Independent brewer Good Drinks Australia (GDA) reports a record growth in group revenue of 157 per cent to $22.3 million for the September quarter
- The company generates revenue from its own brands, agency brands and from venues, with venues revenue growing the most over the quarter from $100,000 to $6.6 million
- Good Drinks also experienced distribution growth across all states and territories it operates in, particularly in Victoria and Tasmania
- In terms of its full-year outlook, the company expects venues and agency brands will contribute “material” earnings and cashflows in FY23
- GDA shares end the day 1.43 per cent in the green to close at 71 cents
Good Drinks Australia (GDA) has reported a record group revenue growth of 157 per cent to $22.3 million for the September quarter.
The independent brewer is based in Australia and owns several beer and drink brands such as Gage Roads Brew Co, Matso’s Broome Brewery, Atomic Beer Project, Hello Sunshine, and more.
The company generates revenue from its own brands, agency brands and from venues, with venues revenue growing the most over the quarter from $100,000 to $6.6 million.
The consumer discretionary stock said venues are a profitable long-term awareness driver in key markets.
For example Gage Roads Freo’s earnings are exceeding the company’s expectations and are indicating potential to contribute over $4 million to FY23 earnings.
The company said Atomic Redfern and Matso’s Queensland are continuing to trade profitably.
Good Drinks also experienced distribution growth across all states and territories it operates in, particularly in Victoria and Tasmania.
Broken down, it saw an 11 per cent growth of own-brand sales and a 104 per cent distribution growth from agency brands which provides opportunities for own-brand sales to new customers.
Its recently onboarded North American distributor, Molson Coors, is opening doors to new customers, doubling distributions nationally to over 25,000. This provides an accelerated platform to grow all of GDA’s brands.
GDA places a strong importance on marketing to drive long-term brand and consumer awareness. It has already seen brand-in-hand opportunities emerging with stadiums, sports team and high-profile influencers.
The company has also launched new products including the Nightlife range for Matso’s ready-to-drink segment and the Seltzer range which launched under its Hello Sunshine brand.
Overall, Good Drinks expects venues and agency brands will contribute “material” earnings and cashflows in FY23.
First-half earnings are slated to be similar to the prior corresponding period (pcp) as it maintains sales and marketing investments, however, the company expects a stronger second half compared to the pcp.
GDA shares ended the day 1.43 per cent in the green to close at 71 cents.