Trading update seems to be on track. Acknowledges cost pressures (+20%) offset through price increases Aug 22 but still showing growth. Good numbers out of the Freo Facility. 250K pints and 150K meals in 3 months! Venues to contribute to cash flow in FY23+.

GDA positive trading update and good reopening outlook with new venues.

Total Sales Volume 4.3mL, up 16%*

Good Drinks Volume 2.5mL, steady*

Contract Brewing Volume 1.8mL, up 50%*

Good Drinks is now Australia’s #1 independent craft brewery

Strong momentum into summer period

Targets

• 20mL of own brands by FY25

• 20-25% own-brand growth per annum

• 65-70% gross profit target

• Consistent EBITDA growth per annum 

Shifted contract brewing production into Q1 to optimise plant utilisation and efficiencies

Currently brewing at full capacity in anticipation of strong GDA brand demand over summer

Faster carton packaging equipment installed and commissioned ($240k)

Cost of goods maintained

Back-freight positioning of Western Australia has mitigated freight cost increases

Strategy to diversify supply partners throughout Asia and Middle East has de-risked our supply chain

National beer market

Total Good Drinks volumes steady on Q1 FY21

National chains growing strongly at 14% in line with strategy

Independent retail volume down 9%:

Introduction of WA container deposit scheme led to significant retailer buy-up during prior year comparative period

East coast Covid lockdowns impacted NSW and Victoria retail and on-premise sales

Draught volume steady on Q1 FY21

Prior year comparative period had unseasonably high sales resulting from customers re-stocking as WA emerged from Covid lockdowns

Contract brewing volumes up 50%

Flexible contract brewing arrangements allowed us to bring forward production into Q1 to maintain strong plant utilisation

SHARE CONSOLIDATION
The Company is seeking Shareholder approval for the Company to consolidate its issued Share capital through the conversion of every ten (10) Shares into one (1) Share (Consolidation).

Purpose of proposed resolution
The Company currently has 1,283,167,579 Shares on issue, which, for a Company of its size, is a considerable number. The Consolidation will result in a more appropriate and effective capital structure for the Company and a Share price more appealing to a wider range of investors.
The large number of Shares currently on issue subjects Shareholders to several disadvantages, including:
(i) incorrect market perception as some investors may perceive lower share prices as an indicator of lower performance or value;
(ii) vulnerability to speculative day-to-day trading which generates shareprice volatility; and
(iii) potential for reduced appeal to quality, long term institutional investors, equity funds and lending institutions seeking stability and long-term growth.
The Board believes these factors can be minimised by the Consolidation.

H1 FY21 CONSOLIDATED SUMMARY

•  Good Drinks Volume up 46% to 6.1m Litres
•  Total Volume up 41% to 8.6 m Litres
•  Revenue up 47% to $28.4m
•  Gross Profit Margin up 2% to 71%
•  Variable Production Costs down 30% to $0.41 per Litre produced
•  EBITDA up $6.8m to $7.1m
•  Good Drinks is the #1 independent craft supplier in Australia
•  Single Fin is now the #1 craft beer in WA
•  Atomic Beer Project (Redfern NSW) open

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02344481-6A1021402?access_token=83ff96335c2d45a094df02a206a39ff4