Castle Brands reports financial results
Company reports 37.8 percent 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 fiscal quarter ended June 30.
The company reported that net sales increased 37.8 percent to $16.5 million for the first quarter of fiscal 2016, as compared with $12 million in the comparable prior-year period. Whiskey revenues increased 106 percent from the comparable prior-year period due to continued strong performance of Jefferson's bourbons and Knappogue and Clontarf Irish whiskeys. Rum case sales increased 11.8 percent from the comparable prior-year period due to growth of Gosling's rums. And Gosling's Stormy Ginger Beer case sales increased 40.8 percent to approximately 228,000 cases from approximately 162,000 in the comparable prior-year period.
Additionally, the company acquired a 20 percent stake in Kentucky Artisan Distillers, a distillery that produces bourbon and rye for Castle, houses a Jefferson's bourbon visitor center and provides substantial storage capacity, the company says.
"This was a particularly strong quarter for Castle Brands. We continued to drive sales of our more profitable brands, such as Jefferson's, Gosling's and our Irish whiskeys,” said Richard Lampen, president and chief executive officer of Castle Brands, in a statement. “This resulted in strong revenue growth, improved margins, decreased G&A as a percent of revenue, reduced net loss and increased EBITDA, as adjusted. We expect these trends of increasing sales and improving financial performance to continue.”
John Glover, chief operating officer of Castle Brands added: "We used a portion of our aged bourbon reserves to support increased sales of Jefferson's and its brand extensions, such as Jefferson's Ocean Aged at Sea. After the end of the quarter, we were able to buy additional aged bourbon to support continued substantial growth of the brand. Our whiskey portfolio also has benefited from additions to our Irish whiskey offerings and the initiation of a barrel program for Knappogue Castle Whiskey. We expect significant growth in whiskey sales to continue.
"Gosling's rums case sales increased over 10 percent and Stormy Ginger Beer case sales increased 40 percent year-over-year, an indication of the growing prominence of the Gosling's brand,” Glover continued. “For the 12 months ended June 30, 2015, sales of Gosling's Stormy Ginger Beer were approximately 781,000 cases, a 60 percent increase over sales in the 12 months ended June 30, 2014. This increased brand recognition should stimulate demand in core markets and provide opportunities for expansion to new markets.”