Lark Distillery Net Sales Fall 4.5% to $3.5 Million as Delayed China Rollout Ends Growth Run

Lark Distilling's net sales fell 4.5% to $3.5 million in the September quarter, ending eight consecutive quarters of growth, as export sales stalled while the company brings on a new distributor in China. Food & Drink Business reported the results. Lark is a Tasmanian single malt whisky producer listed on the Australian Securities Exchange.

Lark's Export Sales Drop 37.7% on China Timing

Export sales were $50,000, down from 15% of sales in the prior corresponding period, when Lark shipped an initial pipefill order. Lark said replenishment shipments to other Asian markets were also delayed. Total international sales fell 37.7% to $0.6 million.

Lark CEO Stuart Gregor said exports were behind expectations. "The China rollout, including onboarding a new distribution partner, has taken longer than planned," Gregor said.

Global travel retail partly offset the decline, rising 32.3% to $0.6 million, helped by new distribution points including Singapore's Changi Airport. Domestic net sales rose 7.9% to $2.9 million. Direct-to-consumer sales, covering Lark's hospitality venues and its own ecommerce, grew 16.4% to $2 million. Business-to-business sales fell 7.5% to $0.9 million, which Lark put down to the timing of shipments to distributor Spirits Platform after a strong end to FY26.

The company spent $1.16 million on operations in the quarter. Customer receipts jumped to $6.9 million, up from $4.8 million in the June quarter, as it collected on strong late-FY26 sales, including to The Whisky Club. Manufacturing and operating payments more than doubled to $3.4 million, reflecting excise and supplier payments on a large payables balance at 30 June, as well as inventory and packaging purchases. Advertising and marketing spend held at $1.5 million as Lark continues to back its Signature range. Gregor said prompted brand awareness in Australia had risen from 8 to 10 per cent over six months, and consideration from 3 to 5 per cent. Cash fell to $12.9 million from $14.3 million, and Lark has an undrawn $5 million NAB facility. Its whisky bank remains at about 2.4 million litres.

Lark's Full-Year Sales and Export Push

According to akta.pro company records, Lark posted FY26 net sales of A$18.0 million, up 15% year-over-year, including Q4FY26 net sales of A$5.0 million, up 44% year-over-year. The records describe Lark as a micro-cap Tasmanian whisky producer pursuing export market expansion into the UK, North America and Asia alongside the domestic Australian market.

Changi Debut and Board Change Preceded the Results

In July 2026, Lark launched its Asia travel retail debut at Singapore Changi Airport with Lotte Duty Free, available across terminals 1-4, Moodiedavittreport reported. In September 2026, Lark appointed Stuart Gregor, co-founder of Four Pillars, as independent non-executive director effective 1 October, replacing Laura McBain, Drinkstrade reported. The move supports Lark's international expansion goals, which include building brand value and maintaining sales momentum.

Lark's Next Reporting Date

Lark's September-quarter results cover the three months to 30 September 2026, and the company has not stated a date for its next quarterly update.