Castle Brands Inc. releases 2015 fiscal year-end results
Company experiences sales increases
New York-based Castle Brands Inc., a developer and international marketer of premium and super-premium branded spirits, reported financial results for the quarter and 2015 fiscal year, ending March 31.
Net sales increased 19.4 percent to $57.5 million for fiscal 2015, as compared with $48.1 million in the prior fiscal year, the company reports. It also reported that total gross profit increased 22.5 percent to $21.6 million, as compared with $17.6 million in fiscal 2014.
Whiskey revenues increased 41.6 percent from the prior year because of continued strong performance of Jefferson's bourbons and Knappogue and Clontarf Irish whiskeys, the company says. It also noted that cumulative Gosling's rum sales exceeded 1,000,000 cases. Gosling's Stormy Ginger Beer case sales increased 66.7 percent to approximately 715,000 cases from approximately 429,000 in the prior fiscal year.
The company also reported continued growth of Jefferson's portfolio, including Jefferson's Ocean Aged at Sea, Chef's Collaboration and Jefferson's The Manhattan: Barrel Finished Cocktail.
"We continue to drive sales of our more profitable brands,” said Richard J. Lampen, president and chief executive office of Castle Brands, in a statement. “This resulted in strong revenue growth, improved margins, decreased G&A as a percent of revenue, significantly reduced net loss and increased EBITDA, as adjusted. We expect these trends and improving financial performance to continue.”
John Glover, chief operating officer of Castle Brands, also noted the company’s accomplishments. "We used our aged bourbon reserves to support increased sales of Jefferson's and its brand extensions, such as Jefferson's Ocean Aged at Sea,” he said in a statement. “Our whiskey portfolio has also benefitted from additions to our Irish whiskey offerings and the initiation of a barrel program for Knappogue Castle Whiskey. We expect strong growth in whiskey sales to continue.
"Sales of Gosling's Stormy Ginger Beer increased 67 percent year over year, an indication of the growing prominence of the Gosling's brand,” he continued. “This increased brand recognition should stimulate demand in core markets and provide opportunities for expansion to new markets.”
In the fourth quarter of fiscal 2015, the company had net sales of $16.2 million, a 29.4 percent increase from net sales of $12.5 million in the comparable prior-year period, it says.
The company reports net sales of $57.5 million for fiscal 2015, an increase of 19.4 percent from net sales of $48.1 million in fiscal 2014. This sales growth was driven by the overall growth of its Gosling's Stormy Ginger Beer, Jefferson's and Jefferson's Reserve bourbons, Clontarf Irish whiskey and Pallini liqueur brands, the company says.