ASX Earnings Wrap: Mighty Craft's record sales as homebrew catches up to big brands

It’s the half yearly season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.

To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.

Mighty Craft (ASX:MCL)

Highlights of Q2 FY23:

Unaudited group revenue of $31.21 million, up 91% on pcp
Record Better Beer sales, achieving 3.2 million litres
Cash receipts of $33.1 million, up 87% versus pcp

The craft beer company said the key drivers for its strong performance include the sales of Better Beer, 78 Degrees and Kangaroo Island Spirits.

During the quarter, the company sold 3.2 million litres of Better Beer, representing a record sales quarter.

MCL says it’s now confident that Better Beer is capable of competing with the largest beer brands in Australia.

“We believe Better Beer is a unique asset of significant value, capable of competing with the largest beer brands across Australia and New Zealand,” said MCL CEO, Mark Haysman.

“The upside potential of Better Beer is incredibly exciting for the business, an opportunity we’re aggressively pursuing.”

The company’s wholesale channel also contributed a record quarterly result in Q2FY23, delivering $25.1 million in revenue which was 93% above pcp.

Positive turnaround was seen across venues during Q2 FY23, particularly across December, as venues achieved $5.5 million in sales.

Looking ahead, Mighty Craft sees improving distribution and sales performance in New Zealand including local production, with a potential for further export opportunities.

Wide Open Agriculture (ASX:WOA)

Highlights of Q2 FY23:

Revenue of $2.76m, up 22% on pcp
Cash at quarter’s end of $11.3m

During the quarter, WOA launched Buntine, the regenerative plant-based protein the company says actively fights climate change.

An extraction, centrifugation and drying process is used to produce a shelf-stable protein-rich concentrate powder for end products such as plant-based dairy, plant-based meats, gluten-free noodles and baked goods.

Highlights in the quarter also include the company’s Dirty Clean Food product range, which was presented at the Retailers Summit at its Perth Headquarters in October, driving the highest quarter of direct retail sales on record.

WOA previously stated its intent to explore strategic partnerships that leverage existing industry infrastructure to accelerate its path to market for commercial production.

The company says it has now identified opportunities for its first commercial production plant (~10,000 tpa initial capacity) with faster time to market.

WOA is currently in negotiations with a potential partner and expects to provide a detailed update on this process.

Change Financial (ASX:CCA)

Highlights of Q2 FY23:

Q2 FY23 revenue of US$2.0m, up 9% on pcp
Signed a five-year partnership agreement with Mastercard
Cash holdings of US$2.8m at December 31

During the quarter, Change Financial Payment Services (CFPS), a wholly-owned subsidiary of CCA, was granted an Australian Financial Services Licence (AFSL).

The AFSL will enable Change to issue prepaid cards in Australia, complementing the company’s debit and prepaid card issuing capability in New Zealand.

Change is also in discussions with Mastercard to seek approval to issue debit cards in Australia where the customer is an authorised deposit-taking institution (ADI) or restricted authorised deposit-taking institution (RADI).

During the quarter, Change signed a five-year agreement with Mastercard in the US, significantly strengthening the partnership both regionally and globally.

This expanded partnership will enable Change to offer debit cards, complementing its existing prepaid card offering in the US.

13 new contracts worth US$800,000 with both new and existing clients were executed during Q2 FY23, including with Vertexon and PaySim.

Change says it continues to target double-digit revenue growth in FY23, and achieve monthly EBITDA positive during H2 FY23.

OneView Healthcare (ASX:ONE)

Highlights of Q4 FY22:

Net operating cash outflow of €600,000, which was 1% lower than pcp
Receipts from customers totalled €3.7m, up 62% on pcp

The digital health provider’s reduced net cash outflow was a significant improvement on the earlier part of the year.

Additionally, customer receipts are usually at their highest level at year-end, as a high proportion of renewals are billed in advance during that period.

Given the increasingly uncertain economic environment, OneView initiated a workforce reduction program in October, to ensure alignment with its strategic objective of reaching cash-flow breakeven.

As a result, admin and corporate costs of €815k were lower than the prior quarter of €827k.

OneView holds a cash balance of €6.4m at 31 December with zero debt.

During the quarter, the company was selected as vendor of choice for two net new US health systems for a minimum of 2,150 additional beds. Both systems currently in contract negotiations.

Other sales opportunities are progressing well through the pipeline according to OneView, while acknowledging the possibility they may not come to fruition.