Mighty Craft has revealed its financial results for the half-year ended 31 December 2023, which show revenue from continuing operations of $28.8 million, up 25% versus prior corresponding period.

Better Beer sales revenue was a stand-out, up 32% to $26.1 million, but its spirits and craft beer business struggled.

Mighty Craft Chair Grant Peck assured shareholders the company was clawing back from its debt challenges.

“Our focus for H1 FY24 was clear – continue to pursue asset divestments in order to deleverage the business and reduce the operating cost base of the company,” he said.

“We have made progress on both fronts, and we intend to continue to focus on these areas as we head into H2 FY24. The company has received a number of non-binding offers for its Adelaide based assets. The company’s future
direction will be determined once we are clear on the outcome of these asset sales.”

Mighty Craft’s Managing Director and CEO Katie McNamara admitted: “From a trading perspective – performance was mixed. We continued to see outstanding performance from Better Beer while trading conditions at the premium end of the spirits and craft beer continued to be challenging. This trend has continued through the early parts of H2 FY24.”

Mighty Craft funding update

Mighty Craft provided a funding update earlier this month outlining how it was attempting to reduce its debt through a divestment program aimed at redefining its core business.

Its latest divestment was Slipstream Brewing, with founders Deale & Elisa Stanley-Hunt entering into a binding agreement to repurchase shares from Mighty Craft, becoming the sole proprietors with 100% ownership.

The transaction saw the transfer of Mighty Craft’s 45% stake back to the founders.

Settlement of the sale of Mighty Craft’s Emu Bay property on Kangaroo Island was scheduled for the 26 February 2024 for a purchase price of $793,000.

The company said its senior lender, Pure Asset Management (PURE), remained supportive of its debt reduction program.