03/08/2021 - 16:08

Good year for Good Drinks

03/08/2021 - 16:08

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Good Drinks Australia’s underlying earnings reached $10.7 million in 2021, up substantially from last year when sales were hit by COVID-19 restrictions.

Gage Roads Brewing Company is one of Good Drinks Australia's brands.

Good Drinks Australia’s underlying earnings reached $10.7 million in 2021, up substantially from last year when sales were hit by COVID-19 restrictions.

According to the ASX-listed drinks company’s 2021 financial year results update, underlying earnings were up 1,683 per cent from $641,466 in 2020.

Revenue was up 40 per cent to $51.6 million and total sales reaches 17.1 million litres, an increase of 39 per cent.

Its biggest growth was from draught sales which increased 60 per cent to 2.4 million litres.

Sales in national chains increased 42 per cent to 3.7 million litres and independent retailers' sales were up 52 per cent to 4.4 million litres.

It produced 19.8 million litres of drinks in the 2021 financial year, its highest ever brewery output.

The company’s first hospitality venue, the Atomic Beer Project in Redfern in Sydney which opened in September 2020, had a $500,000 EBITDA loss which it said was due to COVID-19 restrictions and lockdowns.

It said it was aiming to open its $10 million Gage Roads Brewing Co venue at A Shed in Fremantle by summer 2021.

The project will be funded through a $12.5 million debt facility.

Good Drinks Australia has a target to create up to five local brewery and taproom experiences and is investigating possible options in Queensland and New South Wales.

The company, formerly called Gage Roads Brewing Co, renamed last year to distinguish its original beer brand from the other products it distributes which includes Matso’s and San Miguel.

Shares in Good Drinks Australia were up 4.7 per cent when the market closed this afternoon to 8.9 cents.

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