Good Drinks, the parent company of Gage Roads Brew Co. and Matso’s, has reported strong volumes and revenue growth in the first half of its financial year.
For the first six months, total volumes grew to 8.5 million litres, up 39 per cent on the same time last year. It predicts annual production will reach more than 17 million litres.
Half-year revenues also grew by 42 per cent to $27.4 million, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to $7.1 million, up from $300,000 the year before. Last year Good Drinks reported full-year losses of $2.13 million after a strong start.
In a presentation to investors, it said it had “significantly over-delivered” on expectations.
Good Drinks said that it also outperformed the wider industry, determining that the Australian craft beer sector grew 21 per cent in value, while it grew 30 per cent in value as a company.
The group also declared that its portfolio brands have a retail sales value of $71 million, higher than Stone & Wood’s $65 million.
According to the presentation, Gage Roads Brew Co.’s Single Fin is now the number one independent craft beer in Western Australia and second nationally.
In the GABS Hottest 100 Craft Beers over the weekend, a competition which determines popularity by public voting rather than sales, Single Fin reached number 34, down 19 places.
Good Drinks said the results validate its five-year model, “growing sales and revenue over controlled margins”. It heralded “excellent momentum” to continue growth in the second half of the year.
A major push into venues has also seen its beverages increase in Western Australian and East Coast on-premise, growing tap points in WA 30 per cent in the period, and 16 per cent on the East Coast, which is said drove 25 per cent growth in volume.
As it looks to grow its own venue portfolio, it projected that Gage Roads’ A-Shed venue, announced last year, will have preliminary costs of $10 million and is expected to open next summer.
Good Drinks also has its eye on additional venues in Queensland and New South Wales.