US: Castle Brands sees FY losses slow as sales climb
- FY net losses reduce to US$5.9m from $6.3m a year earlier
- Net sales for 12 months to end of March rise by 10.9% to $35.5m
- Operating losses come in at $3.9m versus $5.4m
Castle Brands has seen its losses reduce in its latest fiscal year, as net sales posted a healthy rise.
The "developer and international marketer of premium and super-premium branded spirits and wine" said late last week that net losses in the 12 months to the end of March came in at US$5.9m, an improvement on the $6.3m losses posted a year ago. Net sales, meanwhile, came in 10.9% up, at $35.5m.
Operating losses also improved, totalling $3.9m versus $5.4m.
For the final quarter, Castle saw net losses hold steady at $1.5m compared to $1.46m, with sales increasing by 12.4% to $10m. Operating losses improved, reaching $951,734 against $1.1m in the corresponding quarter a year earlier.
Castle's president & CEO, Richard Lampen, said the company had focussed its efforts on its "more profitable brands" in the US, such as Jefferson's Bourbons and Gosling's rums. This had allowed the firm to "increase gross margins and significantly improve operating loss in 2012", Lampen added.
Looking ahead, Lampen added: "Castle Brands expects continued increased US and international case sales through organic growth, product line extensions, potential acquisitions and distribution agreements.
"We intend to support this growth with our existing infrastructure, and anticipate our general and administrative expenses to remain relatively flat during this period."
Shares in Castle Brands were up 1.72% on Friday to US$0.30.
For the full company announcement, click here
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