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Highlights
- Mighty Craft Limited (ASX:MCL) was up by 11.4% at AU$0.19 on 30 January 2023.
- The company released a business update for the quarter ending 31 December 2022 (Q2 FY23).
- Unaudited group revenue came in at AU$31.21 million.
- Wholesale performance remained strong across categories, led by beer and cider.
Craft beverage accelerator Mighty Craft Limited (ASX:MCL) saw its shares trade up by 11.4% to AU$0.195 on 30 January 2023. The market capitalisation stood at AU$56.76 million. Today’s share price action came on back of a business update for Q2 FY23, wherein Mighty Craft claims to have delivered a record quarter for the business from a sale as well as operating cash perspective.
How did Mighty Craft perform in Q2 FY23?
Managing Director and CEO Mark Haysman says that in the reporting period (Q2 FY23), the company presented its first positive operating cash outcome ever since it got listed. As per the CEO this significant milestone is a reflection of improving scale across the business and exceptional performance of Better Beer.
Key highlights-
- Unaudited group revenue amounted to AU$31.21 million, 91% up compared to the prior corresponding period.
- Positive net cash of AU$0.6 million.
- Record Better Beer sales of 3.2 million litres. The company has achieved over AU$50 million in retail sales value in the past twelve months.
- Wholesale performance was strong across categories, led by beer and cider. MCL sold 4.3 million litres of beer and cider in the reporting period.
- Cash balance stood at AU$6.3 million (as of 31 December 2022).
Image source- Thirdman | Pexels
What next for Mighty Craft ?
The company claims that Better Beer is heading in the right direction to deliver ten million litres in the first year of trading. After reporting ~18% hospitality EBITDA margins across Q2 FY23, Mighty Craft envisions profitable growth across venues, especially as hospitality operating conditions reflect ongoing improvement.
The company has a positive Q3 FY23 outlook across wholesale and venues. It believes that peak trading momentum is likely to continue, in line with seasonal trends. The focus now is on ongoing capital management as well as divestments amidst simplified strategy, while balancing revenue growth with profit / cash delivery.
Mark Haysman further says that there seems to be a significant opportunity to unlock value for domestically manufactured spirit brands.