US: Castle Brands' losses slow in Q1 as rum sales rise

• Q1 net losses slow by 51.8% to US$1m  
• Net sales rise by 31.5% to $9.7m
• Operating losses improve by 45% to $0.8m
• CEO confident group can deliver long-term "substantial shareholder value" 

Castle Brands has delivered a major slowdown of losses in its first quarter, boosted by a surge in rum sales. 

Net losses slowed by 51.8% year-on-year to US$1m in the three months to the end of June, the New York-based sprits and wines group announced yesterday (14 August). Sales were up by 31.5% to $9.7m, while operating losses improved by 45% to $0.8m.

The group's volumes increased by 22.8% to 86,310 cases in the period, while rum sales were up by 33.3% to $4.1m.

Richard Lampen, Castle's president & CEO, said the growth from its spirits business is due to the "momentum" it has built for Gosling's rums, Jefferson's bourbons and Irish whiskeys. 

"We believe this growth is still in its early stages, as each brand possesses unique qualities and still has significant market opportunities," he added. 

He also pointed to a "strong sales force and management team, which should allow us to continue to increase sales substantially without corresponding increases to costs". 

He added: "We believe these trends will allow us to become solidly profitable and build substantial shareholder value over the long-term." 

Last month, the company also reported a slowing of losses in its full-year results.