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

By | 15 August 2012

  • 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 reported more improvements in its performance

Castle Brands has reported more improvements in its performance

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

Expert analysis

The Future of the Spirits Market in the US, to 2016

Future of the Spirits Market in the US, to 2016 is the result of Canadean’s extensive market research covering the Spirits market in the US.

Sectors: Company results, Spirits

Companies: Castle

There are currently no comments on this article

Be the first to comment on this article

Related articles

GLOBAL: SABMiller Q3 sales rise but rain dampens China

SABMiller has posted a jump in third-quarter sales despite bad weather in China that saw its volumes in the country dip.

Comment - Wine - Losh's Chris-tal Ball - Part II

After last week's look at what the first six months of 2013 has in store for the wine industry, Chris Losh considers the second half of the year. Prepare yourself for yet more insight and analysis from our resident wine bard.

US: Castle Brands losses continue to improve in H1

Growth in its spirits business and a focus on cost control has seen Castle Brands report a shrinking in first-half losses.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page