The Lark Distilling Co Ltd (ASX: LRK) share price has been on a run today, twice hitting a new 52-week high of $1.98. Despite there being no news from the Tasmanian whisky maker, its share price continues to climb on high volume.
At the time of writing, the company’s shares are up more than 4% trading at $1.96. So, what has Lark been doing to garner such attention? Let’s take a look.
Results showing growth
Lark reported its half-year accounts towards the end of February. Pleasingly for shareholders, these numbers showed continued growth in the distilling business. Revenue from activities grew a significant 91% to $7.29 million for the period. Additionally, the company managed to turn profitable, with $542,436 in profits from the half.
In the same announcement, Lark detailed that it had a total of 817,549 litres of whisky set for maturing over the next six years. The liquidation value of the whisky would be approximately $56.7 million, while the sale value at maturation is expected to be $113.6 million.
Furthermore, Lark reported having $46.8 million in net assets at the end of December. This was strengthened by the distiller’s institutional placement of $8.85 million completed back in September of last year. As a result, Lark now has around $12 million of cash to give it financial flexibility moving forward.
Relaunch, online, limited edition
Three ingredients appear to be secrets to the current Lark share price success. The business relaunched its Forty Spotted Gin brand during the first half. The brand’s new packaging in the form of an unusual upside-down bottle has received positive consumer responses.
— FAB News (@fabnewslive) December 3, 2020
Lark has also been using an accelerated social media/influencer campaign to raise brand awareness. E-commerce sales impressively increased by fivefold year over year, driven by its limited release programme.
To ensure that its liquor can be found in stores as well – Lark anticipates key distribution additions of Costco, First Choice, Liquorland, and Dan Murphy’s.
Lark share price recap
Perhaps people were driven to drink during the COVID-19 lockdowns, sending sales soaring. Whatever the catalyst, Lark Distilling has dramatically outperformed the S&P/ASX 200 Index (ASX: XJO) as a result.
The Lark share price has returned 160% over the past 12 months, in comparison to 36.3% from the index. In the last 6 months alone, Lark has gained 70%. That’s worth celebrating.
At today’s current share price, the Tassie distiller commands a market capitalisation of $112 million.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Could Dogecoin and Bitcoin be getting an extra push? – May 12, 2021 6:12pm
- Hamish Douglass loads the bag as Magellan (ASX:MFG) funds top $110bn – May 7, 2021 2:26pm
- Appen (ASX:APX) share price: Is the disruptor becoming the disrupted? – May 7, 2021 9:28am