Top Shelf International (TSI) has said the support of investors, customers and suppliers has enabled its financial year ’24 to be “a transformational year in many ways for the business”.
That call came in the company’s recently released FY24 results which also saw TSI’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) improve by over 50 per cent to -$9.9m.
Speaking about the results TSI CEO Trent Fraser said: “The FY24 improvement of Top Shelf’s gross margin in absolute terms and EBITDA performance of 22 per cent and 51 per cent respectively is a tremendous result particularly in light of soft trading conditions currently being experienced by the beverage sector.
“In addition to a reset of the economic model in FY24, a critical focus has been to accelerate domestic major retail and range expansion. Major retail distribution point growth in excess of 40 per cent during FY24 in a highly competitive environment is testament to the Top Shelf team and quality of our brand portfolio. We are also starting to see the targeted execution plans in dedicated international markets start to bear fruit.
“Although Act of Treason Australian Agave is only in its infancy, it has already won Gold medals at two of the most prestigious global spirit competitions, namely the San Francisco World Spirits Competition, and the International Wine and Spirit Competition in London, UK.
“The efforts of the Top Shelf team with the incredible support of our investors, customers and suppliers enabled FY24 to be a transformational year in many ways for the business.”
The result statement also detailed how TSI brands have been performing in the market and stated: “The Company’s NED Australian Whisky and Grainshaker Australian Vodka have performed well through the second half of FY24 despite soft trading conditions currently being experienced across the beverage sector, particularly in the June quarter. From available retail market scan data, NED Australian Whisky and Grainshaker Australian Vodka are continuing to deliver growth rates above their competitor set.
“Act of Treason Australian Agave sales in its local Whitsundays region and select high image accounts in Australian east coast capital cities have exceeded initial expectations ahead of a broader on premise expansion and the national retail launch with Endeavour Group in July 2024.”
TSI said that the production of its new make spirit for whisky has been “deliberately constrained during FY24”, adding that the company “has sufficient reserves of high-quality whisky through the investment in whisky production and maturation undertaken in recent years”.
In terms of its operations over the year, and ahead, TSI said: “The Company has been focused on preparation for the broader launch of Act of Treason Australian Agave into retail and on-premise channels, in addition to new product development and expanded retail ranging of existing NED Whisky and Grainshaker Vodka products in the September quarter of FY25.”
