Castle Brands releases 2017 Q1 results
Net sales up more than 1 percent
Castle Brands Inc., New York, reported financial results for the first quarter of its 2017 fiscal calendar, which ended June 30, 2016.
Among the highlights were that net sales increased 1.4 percent to $16.8 million for the first quarter of fiscal 2017, as compared with $16.5 million in the comparable prior-year period. During that same timeframe, total gross profit increased 1.3 percent to $6.7 million compared with $6.6 million in the comparable prior-year period.
The company also reported that U.S. Goslings Rum revenues increased 7.6 percent from the prior-year period and Goslings Stormy Ginger Beer revenues increased 27.6 percent from the comparable prior-year period.
“While sales for the first quarter of fiscal 2017, typically our slowest period, were impacted by the timing of introductions of various line extensions and wholesale shipments, we anticipate accelerating sales growth over the balance of fiscal 2017,” said Richard J. Lampen, president and chief executive officer of Castle Brands, in a statement. “We are planning several additional releases for Jefferson's, including Ocean Cask Strength and other wine finishes, to build on the success of Jefferson’s and Jefferson’s Reserve. We expect sales of Goslings Black Seal to accelerate both in the U.S. and internationally and be augmented by the launch of Goslings Gold Seal, while we continue to see increasing sales of Goslings Stormy Ginger Beer.
“Based on the growing strength of depletions (sales from our wholesalers to retail outlets) during the quarter, we expect that accelerating sales growth will produce increased revenue, gross margin and EBITDA, as adjusted,” he continued. “Improved bottom line and substantial unused debt capacity position us to continue to add to our bourbon reserves to support Jefferson's as opportunities arise.”
John Glover, chief operating officer of Castle Brands stated: “In addition, Goslings' sponsorship of the 35th America's Cup Challenge continues to expose Goslings Rum and the Dark 'n Stormy cocktail on a global scale, and should provide for continued growth in the brand's core markets as well as the opportunity to expand to new markets. With the addition of new Goslings distributors in Canada and the Caribbean and launches in France, Sweden, Norway and Italy, we expect U.S. and international sales to increase over the balance of the year.”