Castle Brands' net sales up 14.8 percent in Q2 2015
Growth driven by whiskeys, Gosling’s Stormy Ginger Beer
Castle Brands Inc., New York, reported a net sales increase of 14.8 percent to $13.4 million for the second quarter of its 2015 fiscal year, which ended Sept. 30, compared with the prior-year period. This can be attributed to continued strong growth of Jefferson's bourbons and Irish whiskey, which led to a 36.8 percent increase in whiskey revenues from the comparable prior-year period, the company says. In addition, Gosling's Stormy Ginger Beer case sales increased 72 percent to approximately 192,000 cases from approximately 112,000 cases in the prior-year period, it adds.
"In the second quarter, we used recently purchased aged bourbon reserves to support increased sales of Jefferson's and Jefferson's Reserve, expand our Jefferson's barrel program, accelerate our Jefferson's Ocean Aged at Sea program, and position us to re-issue Jefferson's Chef's Collaboration,” explained John Glover, chief operating officer of Castle Brands, in a statement. “Just as we are expanding our offerings under the Jefferson's umbrella, we are also expanding our Irish whiskey offerings. We have initiated a Knappogue barrel program and plan to add additional offerings under our Knappogue and Clontarf labels. These initiatives, both with Jefferson and our Irish whiskeys, should provide additional growth for our whiskey sales.
"Sales of Gosling's Stormy Ginger Beer increased 72 percent to 192,000 cases in the second quarter of fiscal 2015, an indication of the success of the Dark 'n Stormy cocktail, an important driver of Gosling's sales,” he continued. “Trailing 12 month sales of Stormy Ginger Beer were approximately 570,000 cases, which equates to over 13 million cans each prominently displaying the Gosling's logo. These ginger beer sales help build Gosling's visibility and prominence as a brand.”
Also in the quarter, the company experienced decreased net loss at $900,000, compared with $4.1 million in the prior-year period. Net loss attributable to common shareholders was $1.1 million, or $0.01 per basic and diluted share, in the second quarter of fiscal 2015, as compared with $4.6 million, or $0.04 per basic and diluted share, in the prior-year period.
For the six months ended Sept. 30, the company garnered net sales of $25.4 million, a 14.9 percent increase from the prior-year period. Net loss also was down in the half-year at $2.1 million, compared with $5.2 million in the prior-year period.
"In addition to strong, continued organic growth, we improved our margins, decreased [general and administrative expenses] as a percent of revenue, significantly reduced net loss, and showed positive [earnings before interest, taxes, depreciation and amortization], as adjusted,” said Richard J. Lampen, president and chief executive officer of Castle Brands, in a statement. “We expect these trends of substantial growth and improving financial performance to continue over the balance of the fiscal year.”