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

> Lark Distillery's September-quarter net sales fell 4.5% to $3.5 million as a delayed China rollout and distributor onboarding cut export sales 37.7%.

- Published: 2026-10-28T06:28:41+00:00
- Section: Earnings & Results
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-28/lark-distillery-sales-fall-china-delay
- Source: [Food & Drink Business](https://www.foodanddrinkbusiness.com.au/news/china-delay-ends-lark-s-growth-run)

## Key takeaways

- Lark Distilling's net sales fell 4.5% to $3.5 million in the September quarter, ending eight consecutive quarters of growth.
- Export sales dropped 37.7% to $0.6 million while domestic net sales rose 7.9% to $2.9 million.
- CEO Stuart Gregor said the China rollout, including onboarding a new distribution partner, has taken longer than planned.
- Cash fell to $12.9 million from $14.3 million, with an undrawn $5 million NAB facility.

[Lark](https://akta.pro/company-profiles/0009hly/lark-distillery) 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](https://www.foodanddrinkbusiness.com.au/news/china-delay-ends-lark-s-growth-run) 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](https://akta.pro/company-data), 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.

## Companies in this story

- [Lark Distillery company profile](https://akta.pro/company-profiles/0009hly/lark-distillery) · website: https://larkdistillery.com

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