Investors are drinking up the craft distiller’s shares on Wednesday.
The post Why the Lark (ASX:LRK) share price just jumped 26% to a new all-time high appeared first on The Motley Fool Australia. –
Lark Distilling Co Ltd (ASX: LRK) shares have started this morning’s session with a bang after the company released its investor presentation to the market late yesterday. At the time of writing, the Lark share price is soaring 21.91% higher to $3.95.
At one point during early morning trade, Lark shares had jumped by almost 26% to a new all-time high of $4.08 before partially retreating.
Let’s take a closer look at what’s behind the company’s share price movement today.
Investor presentation shows fuel in the growth engine
Investors are driving up the Lark share price this morning after the company released its 10-page investor summary. The update briefly outlined sales performance for the quarter, but also provided guidance on the value of Lark Distilling’s whisky which is still maturing.
Quoting from the numbers, Lark had a total of 1,093,073 litres of whisky “under maturation”, which constitutes a 54% growth year on year.
Further, the company also achieved an average net sales value of $216/litre, 55% more than the $139/litre earned at the same time last year.
Consequently, the company stated the value of its whisky under maturation for the end of FY21 was over $236 million, up 139% from the year previous.
Lark provided FY22 guidance that called for a 55% year-on-year growth schedule, assuming a value of whisky under maturation of $388.8 million at the end of FY22.
The market seems to have welcomed these results from the company, with the Lark share price shooting to new all-time highs.
Lark shares have jumped on positive financial reports in the past, with the share price hitting a 52-week high back in March following the release of the company’s half-year accounts.
Lark share price snapshot
Today’s gains extend an impressive run for Lark shares this year to date. Since 1 January, the Lark share price has returned more than 160%, outpacing the almost 11% returns of the S&P/ASX 200 Index (ASX: XJO) over this time.
Lark shares have a 12-month return of almost 300%, again outpacing the broad index’s return of ~21% for this time period.
Over the previous 1 month, the Lark share price has remained in the green by ~33%, and has climbed by around 22% in the previous 5 trading sessions.
At the current market price, Lark Distilling has a market capitalisation of around $245 million. Its shares have a 52-week range of 96.5 cents to $4.08, hitting their 52-week high this morning.
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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.