US: Castle Brands sinks deeper into red despite Q1 sales lift
- Q1 net losses widen 47% to US$1.5m
- Net sales grow 7% to $10.4m
- Operating profits narrow 39% to $455,648
- Adjusted EBITDA improves 55% to $200,000 loss
Castle Brands continues to post losses
Castle Brands has widened its Q1 losses despite an upturn in sales and a narrower operating loss.
Net losses rose by 47% to US$1.5m in the three months to the end of June, the New York-based company said yesterday (14 August). Net sales climbed by 7% to $10.4m over the same period while operating losses narrowed by 39% to $455,648.
Most of the losses were caused by a heavier net change in fair value of warrant liability, which widened from a $91,328 loss in Q1 last year to a $447,251 loss in the past quarter.
Castle Brand's president and CEO, Richard Lampen, remained optimistic, saying: “Our core brands continue to show very strong growth... growth of our core brands, coupled with our ability to trim G&A (general & administrative expenses), resulted in further improvement in our EBITDA, as adjusted. We expect this trend to continue in the current fiscal year.”
The numbers mirrored Castle's full-year results last month, when a withdrawal from support for its wine brands saw losses worsen despite a rise in overall sales.
In yesterday's results, sales of Gosling's rum rose 20% to around 28,000 cases sold in the US in the quarter, while “strong growth” of the Jefferson's Bourbons and rye led to a 26% jump in whiskey sales, the company said.
Gosling's Stormy Ginger Beer case sales increased 50% to around 104,000 because of the “growing popularity” of Castle Brands' trademarked cocktail, the Dark 'n Stormy, the company said.
Castle Brands said it has launched a strategic review committee to help improve the company's growth. The committee will be lead by Sergio Zyman, the former Coca-Cola Co CMO, who joined Castle Brands' board of directors this year.
Castle Brand's share price closed down 0.3% in trading on the New York Stock Exchange yesterday.
To read the company's official statement, click here.
The Coca-Cola Co (TCCC) is the leading player in both soft drinks and in HW soft drinks. The company’s strength is based on its diversity of category presence from HW carbonates to RTD tea and bottled...
TechNavio's analysts forecast the Global Bottled Water market to grow at a CAGR of 5.4 percent over the period 2012-2016. The population is increasing in many countries and this is one of the key fact...
Consumption of fruit/vegetable juice declined in 2012 in both the off-trade and on-trade channels. Off-trade volume sales of fruit/vegetable juice fell by 5% in 2012; a third consecutive year of decli...
This report analyzes the worldwide markets for Sports and Fitness Nutrition Foods and Drinks in US$ Million by the following Product Segments: Sports/Energy Foods, and Sports/Energy Drinks....
- Coca-Cola pressure builds as bid rumours swirl
- Gin: Plymouth's from Plymouth, London's from...?
- Why Chinese beverages won't conquer the world
- Fireball Recall: Putting Out Fire with Anti-Freeze
- Interview: Distell Vineyards & Estates' CEO
- Anheuser-Busch InBev cuts jobs in US shake-up
- Diageo targets Millenial women with Baileys push
- NPD - DeLeon Tequila's Platinum and Reposado
- Diageo unveils Ciroc in Times Square push
- Beam Suntory appoints chief HR officer
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Beer Opportunities: Beyond Standard Lager
- The IWSR Global Trends Report 2014
- Global Cognac insights - market forecasts, product innovation and consumer trends research