Good Drinks Australia Limited H1 FY24 report

Good Drinks Australia Limited (ASX: $GDA) has released its Half-Year Financial Report for the period ending 31 December 2023. The report highlights a 2% increase in total revenue compared to H1 FY23, with the company's own brands showing strong performance in the retail beer market while maintaining margins.

Executive Commentary on H1 FY24 Performance

In the first 6 months of FY24, Good Drinks Australia's core brewing and alcoholic drinks business continued to build underlying value for our shareholders through our strategic focus on nationally growing market share and building brand value. The Good Drinks portfolio grew nationally in every channel and every major customer in Australia, and our core brands were pivotal to those results. Although the total Australian beer market has declined by 3% in volume over the last 12 months, it grew by 2.6% in value during the same period, and we are seeing signs of resilience with total beer growing 4.2% in value in the last quarter. During that Q2, Good Drinks Australia was the fastest growing brewing business out of the top 10 largest brewers in Australia as the business executed well against a strong promotional program and growing strategic relationships with our customers to win during the key Christmas trading period.

Summary of H1 FY24 Report and Outlook

Good Drinks Australia's H1 FY24 report demonstrates the company's strong performance, with a 2% increase in total revenue and significant growth in its own brand volumes. The company's strategic focus on nationally growing market share and building brand value has proven successful, with the core brands playing a pivotal role in achieving positive results. Looking ahead, the company aims to continue tailoring its expenditure by focusing on sales, marketing, and support functions on core high-margin brands in its fastest-growing state markets and sales hubs. Good Drinks also anticipates ongoing cost-of-living challenges and softer beer market conditions in H2, with volume growth expected to be similar to H1. The company remains committed to building enterprise value year on year by growing market share, outpacing the competition, and maintaining a low operating cost environment.