It has been a good year for the craft beer specialist so far…
The post Here’s why the Good Drinks Australia (ASX:GDA) share price is gaining appeared first on The Motley Fool Australia. –
The company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $10.7 million and $51.6 million of revenue.
Right now, the Good Drinks Australia share price is 8.9 cents, 3.53% higher than its previous closing price.
Additionally, more than 2.9 million Good Drinks Australia shares have swapped hands today. For comparison, the average number of Good Drinks Australia shares swapping hands per month is 288,399.
Let’s take a closer look at the unaudited results for the 2021 financial year from Australia’s largest independent drinks manufacture.
The financial year just been
The Good Drinks Australia share price is gaining after the company released its results from a successful financial year.
Good Drinks Australia is the company behind beer, cider, and beverage brands Coopers, Stone & Wood, Burleigh Brewing, Young Henry’s, Matso’s, Single Fin, and others.
Over the financial year just been, Good Drinks Australia’s EBITDA increased by a whopping 1,683% compared to that of the previous financial year. Its revenue also increased by 40% when compared to the prior period, while its gross profit improved 69%.
The volume of the company’s own-brand drinks sold increased by 45%. It sold 17.1 million litres of consumable liquids, 11.4 million litres – including more than 1 million cartons – of which were bottled by its own brands.
Its Single Fin brand also surpassed a milestone 1 million cartons sold during the period. Single Fin is Western Australia’s most popular craft beer.
The company reported a 30% growth rate in distributions on Australia’s eastern coast.
Its total production volume for the 12 months ended 30 June was 19.8 million litres – 53% more than its production during the 2020 financial year.
The company’s Atomic Beer Project Redfern venue recorded an EBITDA loss of $500,000 due to COVID-19 restrictions implemented during its first year of operations.
The company is also building a venue for its Gage Roads brand. The build’s expected to cost $10 million. It will be funded through a $12.5 million debt facility.
Good Drinks Australia share price snapshot
The Good Drinks Australia share price has been performing well on the ASX lately. It has gained 10% year to date. It is also 76% higher than it was this time last year.
The company has a market capitalisation of around $108 million, with approximately 1.2 billion shares outstanding.
Should you invest $1,000 in Good Drinks Australia right now?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.