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Highlights
- The benchmark S&P/ASX 200 Consumer Staples sector has gained marginally by 0.87% in the past one month on the ASX.
- The S&P/ASX 200 has moved up by 5.09% in a month on the ASX.
- Ahead of Christmas, let us see how some ASX-listed beverage stocks have been performing lately.
The Consumer Staples sector under the ASX comprises companies dealing in essential products used by consumers on a regular basis. The classification features foods and beverages, household products, and even alcohol and tobacco.
When it comes to the food and beverage industry in Australia, as per the Commonwealth Scientific and Industrial Research Organisation (CSIRO), this sector could grow to US$25 billion by 2030. Ecommerce in the food and beverage sector has flourished, meeting the present preferences and demands of customers.
Delving deeper into the beverage industry, trends have shown that in line with an increased consumer focus on health, sales of non-alcoholic beverages have zoomed up in Australia. As per the FY2022-2021 sales data of the Endeavour Group (ASX:EDV), non-alcoholic drink sales have risen by more than 83% across Australia in the time period.
Meanwhile, on the ASX, the benchmark S&P/ASX 200 Consumer Staples sector has gained marginally by 0.87% in the past month, while the S&P/ASX 200 has moved up by 5.09% in the same time (as of 1:30 PM AEDT, 9 November 2022).
With Christmas round the corner, we at Kalkine Media® today discusses the performance of some of the most sought-after beverage stocks on the ASX. The stocks featured are Treasury Wine Estates Limited (ASX:TWE), Lark Distilling Co. Ltd (ASX:LRK), Australian Vintage Ltd (ASX:AVG), Good Drinks Australia Ltd (ASX:GDA), and Top Shelf International Holdings Ltd (ASX:TSI).
Treasury Wine Estates Limited (ASX:TWE)
An Australian winemaking and distribution business with its headquarters in Melbourne, Treasury Wine Estates was founded in 2011 and got listed on the ASX in the same year. The company has a market capitalisation of AU$9.21 billion and is currently priced at AU$12.710 per share on the ASX (as of 3:00 PM AEDT, 9 November).
The beverage company, in a trading update shared on 18 October 2022, announced that its net sales revenue fell 4% to AU$2.5 billion, impacted by the divestment of the US Commercial portfolio. Also, the closure of Mainland China to Australian wine and lower Commercial wine sales in Australia and the UK affected the sales. However, the EBITS margin increased to 21.1% and the company paid a full-year 2022 dividend of 31 cents per share, a rise of 10.7% on the fiscal 2021 dividend. Acquiring Frank Family Vineyards is a highlight of TWE’s year.
TWE has gained 1.52% in the last five trading days and lost 1.32% in the last month. In the last six months, the shares of Treasury Wine Estates have gained 15%, and in the last year they have appreciated by 10%. On a year-to-date basis, the shares have moved up 1.76%.
Image source: © Edwinhobert | Megapixl.com
Lark Distilling Co. Ltd (ASX:LRK)
A producer of single malt whisky, spirits, gin, and sanitisers, Lark Distilling was founded in 1992 and was formerly called Australian Whiskey Holdings Limited. The company later changed its name to Lark Distilling in 2020. Headquartered in Hobart, Australia, Lark Distilling has a market capitalisation of AU$168.09 million and is priced at AU$2.170 per share on the ASX (as of 3:36 PM AEDT, 9 November 2022).
On 4 November 2022, Lark announced that it had appointed Satya Sharma as the chief executive officer of the company effective 1 May 2023.
In its September 2022 quarterly activities report and market update shared on 31 October 2022, Lark reported net sales of AU$4.2 million and a gross profit margin of 67.7%.
Meanwhile, on the ASX, the shares of Lark have gained 7.04% in the last five trading days and have shed 0.47% in the last month. In the last six months, the stock has lost 26.04In the last five years, Lark Distilling has gained 126.60% on the ASX (as of 4:10 PM AEDT, 9 November 2022).
Australian Vintage Ltd (ASX:AVG)
This wine producer was incorporated in 1991 and was listed on the ASX the very next year. Australian Vintage Ltd has a market capitalisation of AU$168.00 million and its share price is pegged at AU$0.660 apiece on the ASX (as of 9 November).
In its annual report shared on 20 October 2022, the company reported an underlying profit of 7% and a net debt of AU$74.5 million.
The shares of AVG have gained 4.76% in the past month and lost 7.04% in the last six months. In the last year, the shares of the wine company have shed 23.26%, and on a year-to-date basis, the shares have lost 18.52% on the ASX (as of 3:58 PM AEDT, 9 November 2022).
Image source: © Ersler | Megapixl.com
Good Drinks Australia Ltd (ASX:GDA)
Australia-based Good Drinks Australia is an independent brewer and houses brands like Gage Roads Brew Co., Matso’s Broome Brewery, Alby, and San Miguel. Its main production brewery is in Palmyra in Western Australia and it produces more than 17 million litres of beverages annually.
The company has a market capitalisation of AU$87.91 million and its share price is pegged at AU$0.700 per share on the ASX (as of 9 November 2022).
On 30 August 2022, Good Drinks shared its financial report for the year ended 30 June 2022. As per the report, the company registered a rise of 29% in revenue but posted a loss of 22% in EBITDA. The total sales volume rose 13% and the brand volume increased 16%.
Meanwhile, the shares of the company have gained 2.94% in the last five trading days, while they have lost 2.78% in the last month. In a year’s span, the stock has lost 20.45%, while on a year-to-date basis, the shares have lost 22.22%. In a span of five years, the company has managed to gain just around 3% (as of 3:53 PM AEDT, 9 November).
Top Shelf International Holdings Ltd (ASX:TSI)
Australian diversified branded spirits company Top Shelf International Holdings has its head office in Campbellfield, Victoria. The company owns brands like Ned, Grainshaker, and Agave.
On the ASX, the company has a market capitalisation of AU$84.47 million and its share price is pegged at AU$1.225 apiece as of 9 November 2022.
On 26 October 2022, the company shared its report for the FY23 first quarter. The report declared a branded product revenue growth of 252.3% in FY23 Q1 compared with FY22 Q1. Over the last 12 months to 30 September 2022, the company’s group revenue has grown to AU$28.5 million.
The shares of the company have gained 0.82% in the last five days and have lost 1.21% in the last month. In the last six months, the stock has lost 9.26%, and in the last year, the shares have shed 24.85% on the ASX (as of 4:10 PM AEDT, 9 November).
