Mighty Craft has posted strong results for the third quarter of its financial year, with revenues rising 105 per cent to $19.8 million.

A large proportion of this was from Better Beer sales, which reached $7.8 million, and 1.8 million litres in the quarter. It has targeted 4 million litres of the beer, which is brewed at Casella Family Wines’ Australian Beer Co., in the full year.

EBITDA improved from a loss of $2.2 million in the same quarter last year to a loss of $1.3 million.

The ASX-listed business reported a negative operating cash flow of $2.9 million, an increase on the $1.6 million negative operating cash outflow of the previous quarter.

The craft drinks company said this reflected the COVID impact in venues as well as the increased working capital investment to support growth, particularly of Better Beer.

Mighty Craft explained that continued COVID disruption led to venue sales dropping to 25 per cent of total business sales, compared to the previous corresponding period when they made up 45 per cent.

As part of its whisky plans, it has launched a Whisky Development Syndicate, a funding initiative that Mighty Craft says will allow it to fund and accelerate production and maturation of whisky without utilising its own cash reserves.

The company, which spent its first couple of years acquiring brewery businesses, also confirmed it was actively pursuing the sale of non-core assets, some of which it says will be completed in Q4 this year.

Mighty Craft managing director Mark Haysman said that the business is in good shape heading into its next financial year.

“Q3 FY22 was another record sales quarter for the business despite ongoing COVID impacts to both our own venues and sales into the on-premise channels.

“Whilst this has caused a short-term impact from a profit mix perspective, we view this as temporary and expect hospitality to continue to bounce back to pre-COVID levels.

“We will continue to simplify and focus the business, back the brand winners and divest non-core assets, which will also help us from a capital management point of view.

“We have a very clear set of priorities and the best portfolio of craft beverages in the country, which is incredibly exciting.”

Hear more about Mighty Craft and its strategy on the Beer is a Conversation podcast with Mark Haysman.