Castle Brands, a developer and international marketer of premium and super-premium branded spirits, today reported financial results for the quarter ended June 30, 2015.
Net sales increased 37.8% to $16.5 million for the first quarter of fiscal 2016, as compared to $12.0 million in the comparable prior-year period.
Total gross profit increased 45.8% to $6.6 million, as compared to $4.5 million for the comparable prior-year period.
EBITDA, as adjusted, improved to $0.6 million, as compared to a loss of ($0.1) million in comparable prior-year period.
Whiskey revenues increased 106% 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% from the comparable prior-year period due to growth of Gosling's rums.
Gosling's Stormy Ginger Beer case sales increased 40.8% to approximately 228,000 cases from approximately 162,000 in the comparable prior-year period.
Acquired a 20% stake in Kentucky Artisan Distillers, a distillery that produces new fill bourbon and rye for Castle, houses a Jefferson's bourbon visitor center and provides substantial storage capacity.
"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. 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," stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands.
"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 has also 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," said John Glover, Chief Operating Officer of Castle Brands.
"Gosling's rums case sales increased over 10% and Stormy Ginger Beer case sales increased 40% year over year, an indication of the growing prominence of the Gosling's brand. For the 12 months ended June 30, 2015, sales of Gosling's Stormy Ginger Beer were approximately 781,000 cases, a 60% increase over sales in the 12 months endedJune 30, 2014. This increased brand recognition should stimulate demand in core markets and provide opportunities for expansion to new markets," Mr. Glover added.
The Company had net sales of $16.5 million in the first quarter of fiscal 2016, an increase of 37.8% from net sales of$12.0 million in the comparable prior-year period. This sales growth was driven by the overall growth of ourJefferson's bourbons, Gosling's rums and Stormy Ginger Beer, Knappogue and Clontarf Irish whiskeys and Pallini liqueurs. Net loss attributable to noncontrolling interests was ($0.3) million in the first quarter of fiscal 2016, as compared to ($0.3) million in the comparable prior-year period. The net loss attributable to common shareholders was ($1.1) million, or ($0.01) per basic and diluted share, in the first quarter of fiscal 2016. This compares to a net loss attributable to common shareholders of ($1.5) million, or ($0.01) per basic and diluted share, in the comparable prior-year period.
EBITDA, as adjusted, for first quarter of fiscal 2016 improved to $0.6 million as compared to ($0.1) million in the comparable prior-year period.
