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The owner of popular craft beer brands Gage Roads, Matso’s, Atomic and more has recorded an 80 per cent uplift in profit and doubled its retail market share during the first half of the current financial year.
As per unaudited results posted this morning, Good Drinks Australia (ASX: GDA) says revenue rose to a record $59.2 million in the half as it chalked up $6.1 million in EBITDA - a ‘strong result given softer macro-economic conditions’.
The company now claims it commands 2.6 per cent of the total beer market in Australia - double what it had in 1H22 - buoyed by 12 per cent growth of its own-brand sales.
Revenue growth was most pronounced in New South Wales and the ACT, rising by 115 per cent to $2.6 million, but the company’s biggest supporters remain in its home state of Western Australia where it generated $24.2 million of revenue - up 23 per cent.
In total, GDA sold 14.1 million litres of drinks, and achieved strong earnings contributions from new hospitality and partner brands business units - validating the diversification of the Good Drinks platform according to the company.
Good Drinks claims the Gage Roads Single Fin Summer Ale is now the number one independent craft beer in Australia - achieving sales of 20 cans/bottles and five pints of the drink every minute.
Similarly, it boasts that the Matso’s ginger beer is the number one independent ginger beer in the category, while sales of Matso’s draught are up 86 per cent on the prior corresponding period.
GDA says it intends on hitting targeted growth earnings of between $25-30 million by FY25, but notes reduced discretionary spend across the liquor category ‘will require careful navigation over the next 18 months’.
The 1H23 results come one day after GDA announced the appointment of Aaron Heary as an executive director, responsible for strategy, brand and hospitality.
The new director has more than 26 years of experience in the liquor market, both in Australia and abroad. He has been with the company since 2004 and has held the dual roles of COO and chief strategy officer for Good Drinks since 2014.
“Over the last 19 years, I’ve been privileged to work with some incredibly talented people across all aspects of the business,” Heary said.
“I look forward to working with the board and broader team to continue delivering our solid growth trajectory and maximise earnings for our shareholders in coming years.”
The company also promoted Phil McClintock internally to COO yesterday, taking over the position from Heary.
McClintock joined GDA in 2013 as financial controller, before progressing to the head of commercial role in 2019 where he has been responsible for procurement, inventory management, route to market logistics, production centres and revenue management.
“Phil has been one of the company’s top performers since his first day on the job, both culturally and technically,” GDA managing director John Hodemaker said.
“He has driven the improvement of commercial rigour, data-based decision making and revenue management across the business and most recently Phil was central to the negotiation and integration of our partnership brands Millers, Coors and Magners.”
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