Top Shelf International (ASX: $TSI) announces capital raising and strategic initiatives

Top Shelf International Holdings Ltd (ASX: $TSI) has released a presentation outlining its capital raising initiatives and strategic vision. The company is executing a pivot to margin and profit focus, with the appointment of industry veterans Julian Davidson and Phil Baldock. The focus on brand margin improvement initiatives, including brand innovation and New Product Development, controllable cost base reduction, and underlying EBITDA loss improvement, reflects the company's commitment to achieving positive EBITDA and operating cash flow breakeven by the fourth quarter of FY25.

Executive Commentary

The company's strategic vision is to transcend and transform Australian spirits culture, with a focus on brand premiumisation, customer obsession, drive brand desirability, operational excellence at scale, and strategic partnerships. The successful launch of Act of Treason Australian Agave and expanded distribution are key growth drivers, with a positive outlook for FY25 net excise revenue and underlying EBITDA trajectory to breakeven by FY25 Q4.

Summary

Top Shelf International (ASX: $TSI) is undertaking a series of transactions to generate a minimum of $15.0m of gross proceeds, with a focus on reducing debt and providing sufficient working capital to fund the company to profitability. The company's strategic initiatives include a pivot to margin and profit focus, enhanced balance sheet, and growth drivers such as Act of Treason Australian Agave, ranging expansion, international markets, innovation, and margin enhancement. The company aims for positive EBITDA and operating cash flow breakeven by FY25 Q4, supported by its premium brand portfolio and significant asset base.