US: Castle Brands hamstrung by prior-year gains in Q3
Castle Brands has seen net losses in its fiscal third quarter soar as a prior-year foreign exchange gain compared against a foreign exchange loss in the three-month period this year.
The US-based drinks developer and marketer, whose portfolio includes Gosling's rum and Jefferson's Bourbon, said yesterday (14 February) that net losses in the three months to the end of December leapt by 625.6% on the corresponding quarter a year earlier, coming in at US$1.5m. Sales in the quarter fared better, however, climbing by 16.4% to $8.7m, while operating losses held steady, rising by 2.5% to $1.22m.
Profits in the latest quarter included a $119,000 foreign exchange loss, Castle Brands noted, compared to a $628,000 foreign exchange gain and a $406,000 gain from the sale of the Sam Houston Bourbon brand in the prior-year period.
For the nine months to the end of December, net losses followed the Q3 lead, jumping by 382% to $4.8m, while sales increased by 4.5% to $23.05m. Operating losses again came in flat, inching up by 0.9% to $4.3m.
“Our case sales continued to grow during the quarter as we focused on our stronger growth markets and better performing brands,” said chief operating officer John Glover. “In addition, our recently-launched Travis Hasse's Apple Pie and Cherry Pie Liqueurs have exceeded expectations.
“We continue to focus on reducing expenses throughout our operations,” Glover concluded.
To see Castle Brands' H1 performance, click here.
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