Mighty Craft Achieves +25% Sales Growth in Q3 FY23 with Neutral Operating Cash Result

Mighty Craft Limited (ASX:MCL) (“Mighty Craft”, “MCL” or the “Company”), a craft beverage accelerator with a nationally diversified portfolio, is pleased to provide a business update for the quarter ended 31 March 2023 (Q3 FY23 or Q3) and Appendix 4C.

Q3 FY23 HIGHLIGHTS:

• Unaudited group revenue of $25.7¹ million, +24.5% versus prior corresponding period (“pcp”)
• Cash receipts of $28.0 million², +31% versus pcp
• Neutral Operating cashflow for the quarter versus $(2.9) million in pcp
• Better Beer sales of 3.1 million litres (+78% versus pcp), now cycling a full quarter of sales in pcp (since launch, October 2021)
• Wholesale performance steady across categories
  o Beer & cider – 3.8 million litres sold (+50% versus pcp)
  o Spirits – 52k bottles sold (+15% versus pcp)
• Steady growth and positive earnings across ongoing venue portfolio³ (~22% growth and ~16% hospitality EBITDA margin)
• Completed $5.2 million capital raise (before fees) to strengthen balance sheet and provide funding to accelerate Better Beer sales and brand investment in Spirits
• $9.7 million cash balance as at 31 March 2023
• Progress on simplification with binding terms sheet executed on the Mighty Moonee Ponds for settlement in Q4 FY23 for $385k
• Hidden Lake ownership structure simplified (100% owned by MCL)
• Two important board appointments as part of the ongoing board renewal process with Katie McNamara and Trevor O’Hoy joining the MCL board

Mighty Craft’s Managing Director and CEO, Mark Haysman said:

“Q3 was a steady quarter for the business from a growth perspective and pleasingly we delivered a neutral operating cash result. Importantly, we completed a capital raise in March, providing funding to further accelerate Better Beer sales and increase brand investment in our spirits portfolio. The Company has delivered approximately $58 million in sales in the last six months along with a positive operating cash result of +$1.6 million. We continue to remain extremely focussed on pursuit of simplification and cost reduction, while balancing top line growth with building sustainable future earnings. We remain confident the business is well on-track with this strategy.”

Read the full announcement at bit.ly/3Z4uwv6

Watch the announcement webinar with Mark Haysman here bit.ly/41sNrkK

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¹ Group unaudited revenue in Q2 FY23 includes sales from discontinued operations of approximately $1.7m
² Group unaudited cash receipts in Q2 FY23 includes sales from discontinued operations of approximately $1.5m
³ Excludes venues classified as discontinued operations in H1 FY23 financial statements