Why the Top Shelf International (ASX:TSI) share price soared 15% today

Investors are toasting the beverage manufacturer after the company released a positive update

The Top Shelf International Holdings Ltd (ASX: TSI) share price has walked through today's session firmly in the green. At the closing bell, Top Shelf shares were swapping hands for $2.09, a gain of 14.8%.

Today's gains come after the company gave an overview of its maturing spirit inventory and net sales value.

Let's take a closer look at what Top Shelf released today and what other tailwinds are behind the beverage manufacturer's share price lately.

Group of friends toasting with drinks.

Image source: Getty Images

Inventory and net sales value

Top Shelf announced that, as of 30 June, it had maturing spirits with a net sales value of $272 million.

This signifies a 521% year-on-year increase, and a 124% increase above its prospectus.

Top Shelf's total spirit inventory increased to 3.5 million litres, representing a 410% increase from one year ago.

The company also realised an average net sales value per litre for NED whisky of $71.40, a 23% increased from 1H FY21.

To arrive at these calculations, Top Shelf "engaged PwC to perform certain procedures on the calculations and methodology".

Investors have relished the announcement, driving the Top Shelf share price higher.

What other tailwinds are behind Top Shelf's share price?

The company also reported its unaudited FY 2021 earnings results on 14 July. Here, the company recorded unaudited revenue of $20 million.

These results signified a 160% year-on-year growth from 30 June 2020, matching the forecasts in the company's prospectus.

Top Shelf also reported "branded product revenue" of $12.7 million, a 211% increase from the $4 million in FY 2020.

Investors are buying into the company's growth narrative following the results, pushing the Top Shelf share price 25% into the green over the previous 5 trading sessions.

Top Shelf share price snapshot

The Top Shelf share price has posted a return of 2.5% this year to date, after a gradual run-down from highs of $2.20 in March.

The company's share price hit a low of $1.61 at the close on 13 July, however has since climbed 30% since these two announcements.

Top Shelf has a market capitalisation of $90 million at the time of writing.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

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