Mighty Craft reports strong start to Q2
ASX-listed accelerator Mighty Craft has issued its latest trading update advising it has seen growth across channels for October and November 2022.
The company announced it had made $20 million in total group sales, representing a 138 per cent growth on the same period last year.
While the business said it continues to navigate lingering impacts of COVID, it noted that venue performance has “improved.”
This includes the newly opened Mismatch Brewpub, which sees the venue “operating on an EBITDA profitable basis”, according to the accelerator, due to weekly sales improvements.
Mighty Craft also reported a strong performance within its wholesale channel, with beer and cider sales growing 262 per cent from the prior corresponding period. Assets Better Beer and Mismatch had a 1,734 per cent and 38 per cent growth in litres sold.
“Our trading and forward expectations remain encouraging as our customers are reengaging in social activities in a pre-COVID manner, resulting in favourable trading conditions,” Mighty Craft managing director and CEO Mark Haysman said in a statement to the ASX.
“The ongoing and consistent growth of Better Beer adds to our confidence overall, reinforcing our long-standing view of the potential of this brand, in addition to our strategy of creating a portfolio of brands capable of delivering considerable shareholder value over time.”
Better Beer also had the launch of the inaugural ‘Day For IT Day’, which had “exceeded expectations,” Mighty Craft said.
The price driven activation day, which launched on Saturday 3rd December to celebrate the start of summer, saw an estimated 300,000 litres sold and $110,000 of merchandise sales.
Elsewhere in its update, Mighty Craft reported that progress has been made on various planned divestments, noting that two are expected to close prior to Q3 in this financial year.
While the company has not officially announced which businesses it would be disposing of, its recent annual report noted its 100 per cent-owned Jetty Road and Mismatch Breweries were “focus brands”. The report also noted that Foghorn Brewery, Mighty Hunter Valley Pty Ltd and Mighty Moonee Ponds Pty Ltd were assets held for sale.
In September, the accelerator exited its shareholding with Sparkke Group Holdings Pty, following its announcement to divest “non-core assets” earlier this year.
Managing Director and CEO Mark Haysman recently spoke with the Radio Brews News podcast to discuss the company’s varying fortunes and the challenges it has faced in scaling its craft portfolio.
Listen to the full episode with Mark Haysman below.