- 16% increase in underlying earnings for FY24 driven by solid volume growth.
- Distribution deals with Miller, Coors, and Magners boost market presence.
- Challenges in hospitality sector due to underperformance of Atomic Redfern.
Good Drinks Australia has reported a 16% increase in underlying earnings for FY24, showcasing impressive growth amid a tough beer market.
The rise is largely attributed to solid volume increases in its own brands, with significant contributions from distribution deals with major international brewers like Miller and Coors.
Strategic Investments Drive Good Drinks Australia’s Profit Growth
The company’s strategic investment in marketing and brand development has helped it achieve notable gains, making it the fourth-largest brewer in Australia. The focus on premium brands has resonated with consumers, even as the company faced challenges with its hospitality sector, particularly with the Atomic Redfern venue. This venue has been written down to zero, impacting overall revenue but highlighting Good Drinks’ commitment to refining its operations.
The Perth-based company has also faced difficulties within its hospitality division, with a significant drop in revenue due to the underperformance of its Atomic Redfern venue. This venue has been written down by $4.5 million, reflecting broader challenges in the Sydney hospitality market. Nevertheless, Good Drinks’ investments in plant improvements and venue development underscore its commitment to long-term growth.
Despite the setbacks, Good Drinks Australia remains confident in its ability to sustain growth through strategic investments and brand management. The company plans to leverage its property assets to unlock further capital, which will support ongoing expansion and marketing efforts.
In conclusion, Good Drinks Australia’s strategic focus on premium branding and international partnerships has enabled it to thrive despite market challenges. The company’s ability to navigate both growth and setbacks will be crucial in maintaining its position in the competitive brewing landscape.
“We have been investing ahead of the curve in ourselves and in marketing; that’s why I think we have grown to become the fourth-largest brewer in Australia and our brands are resonating with consumers,”
