Mighty Craft Achieves +90% Sales Growth and Improved Earnings Momentum in H1 FY23

Mighty Craft Limited (ASX:MCL) (“Mighty Craft”, “Group” or “the Company”), a craft beverage accelerator with a nationally diversified portfolio, is pleased to announce its financial results for the half-year ended 31 December 2022 and provide an update on the outlook for FY23.

H1 FY23 HIGHLIGHTS:

• Revenue from continuing operations of $45.0 million, +89.7% versus prior corresponding period (“pcp”)
• Reported EBITDA¹ from continuing operations of $(1.8) million, versus $(3.3) million in pcp
• Underlying EBITDA² from continuing operations of $(0.4) million, adjusting for one-off items, including share-based payments and one-off finance costs
• Better Beer sales revenue of $19.3 million (+1,067% versus pcp), with total sales exceeding 4.7 million litres
• Significant improvement in operating cash outflow of $(1.0) million, versus $(7.1) million pcp
• Investing cash outflow of $(1.5) million, reflecting prudent capital investment strategy
• $6.3 million cash balance as at 31 December 2022
• Positive Q3 FY23 outlook across both wholesale and venues, with peak trading momentum to continue in line with seasonal trends

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

“The team has delivered a really strong result for the first half, in what is the first peak trading period not impacted by COVID restrictions in three years. Our earnings and cashflow trends continue to improve as we delivered the first quarterly cashflow positive result since listing during Q2, along with positive underlying EBITDA of $1.0m for the quarter. Our enhanced scale and performance illustrates Mighty Craft growth is exceeding that of the broader market as we continue to gain significant market share across beer, cider and spirits. This, in turn, drives a significant improvement in gross profit and EBITDA performance during the half.

“I’m particularly pleased at the performance of strategic venues as they continue to play a very important role for our brands, particularly in light of a normalisation of social behaviour, post a period of restrictions. Our venues grew sales by +40% during the half, importantly delivered EBITDA margins of approximately 20%, reflecting the return of hospitality to pre COVID levels.

“Elsewhere, we expect momentum to continue into the second half, across our portfolio, driven by Better Beer’s exciting innovative product launches slated in coming months. We remain extremely excited for ongoing growth and path to sustainable earnings over coming periods as we continue to leverage our unique network of brands and venues”.

Read the full announcement at bit.ly/3Z4uwv6

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

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¹ EBITDA is a non-IFRS measure that the company believes is an important indicator of performance.
² Underlying EBITD removes one-off impacts relating to share-based payments and one off finance costs.