• FY net losses widen 50% to US$9.3m
  • Net sales in 12 months to end of March up 16% to $48.1m
  • Operating losses narrow 70% to $1.3m
Castle brands said it has completed its non-cash charges

Castle brands said it has completed its non-cash charges

Castle Brands has called fiscal 2014 a “turning point” despite a difficult 12 months in which full-year sales increased but losses widened.

Net losses increased by 50% to US$9.3m in the 12 months to the end of March, the New York City-headquartered spirits producer said today (30 June). Net sales were up by 16% to $48.1m while operating losses narrowed by 70% to $1.3m.

The company said it has now completed a series of non-cash charges - most of which related to the change in fair value of warrant liability - and in fiscal 2014 showed a positive EBITDA for the first time in the company's history.

The charges saw Castle post a disappointing Q3 despite an increase in sales.

Richard Lampen, president & CEO, said of the positive EBITDA: “We view this as an important turning point and expect the trends of sales growth and cost containment to continue.”

Fourth-quarter results backed up Lampen's optimism, with losses narrowing from $3.3m last year to $630,917. Sales in the same period were up by 16% to $12.5m.

The company praised “very strong growth” in its Jefferson's Bourbon and rye brands in fiscal 2014 that led to a 43.5% increase in whiskey sales from the prior year.

Gosling's Rum increased case sales by 14% while Gosling's Stormy Ginger Beer case sales increased by 63%.

Castle Brands' share price increased by 12.5% in morning trading today.

To read the company's full results, click here.