US: Castle Brands optimistic despite FY losses increase
- 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 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.
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