Mighty Craft Achieves +91% Sales Growth in Q2 FY23, Delivering Maiden Positive Cash Result

Mighty Craft Limited (ASX:MCL) (Mighty Craft or the Company), a craft beverage accelerator with a nationally diversified portfolio, is pleased to provide a business update for the quarter ended 31 December 2022 (Q2 FY23) and Appendix 4C.

Q2 FY23 HIGHLIGHTS:

• Unaudited group revenue of $31.2 million¹, +91% versus prior corresponding period (“pcp”)
• Cash receipts of $33.1 million², +87% versus pcp
• Positive net cash of +$0.6 million, including positive net cash from operating activities of +$1.6 million
• Record Better Beer sales, achieving 3.2 million litres in Q2 FY23 (+687% versus pcp) and has now achieved in excess of $50 million in retail sales value³ in the last 12 months
• Better Beer on track to deliver 10 million litres during first full year of trading
• Wholesale performance robust across categories, led by beer and cider
  – Beer & cider – 4.3 million litres sold (+177% versus pcp)
  – Spirits – 109,993 bottles sold (+22% versus pcp)
• Profitable growth across venues as hospitality operating conditions reflect ongoing improvement (~18% hospitality EBITDA margins across Q2 FY23)
• Whisky under maturation exceeds ~400,000 litres
• Positive Q3 FY23 outlook across both wholesale and venues with peak trading momentum to continue in line with seasonal trends
• $6.3 million cash balance as at 31 December 2022
• Ongoing capital management focus, divestments amid simplified strategy
• Investor webinar to be held 11:00am AEDT Monday, 30 January (register here)

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

“Q2 FY23 was a record quarter for the business from both a sales and operating cash perspective. We delivered the first positive operating cash result since listing in December 2019 – a significant milestone, reflecting increasing scale across the business and incredibly strong performance of Better Beer.

“We believe Better Beer is a unique asset of significant value, capable of competing with the largest beer brands across Australia and New Zealand. The upside potential of Better Beer is incredibly exciting for the business, an opportunity we’re aggressively pursuing.

“Our focus spirit brands are also performing very well. Likewise, we’re confident there exists significant opportunity over coming years to continue to unlock value for locally manufactured spirit brands. Our outlook for Q3 FY23 is strong, and we remain committed to balancing revenue growth with profit / cash delivery, while simplifying the business through our program of divestments”.

Full ASX announcement available at https://bit.ly/3Yb8R3v

¹ Group unaudited revenue in Q2 FY23 includes sales from discontinued operations of approximately $2m
² Group unaudited cash receipts in Q2 FY23 includes sales from discontinued operations of approximately $2m
³ Retail sales data sourced from available retail consumer data covering on-premise and off-premise sales