US: Drinks Americas cuts H1 losses, needs finance
- Group needs extra funds
- Cuts H1 losses
- Sales down by 45%
Drinks Americas seeks finance to fund business plan
Drinks Americas has reduced its net losses in the first half of it fiscal year, but sales fell sharply due to a lack of working capital.
Drinks Americas said this week that net losses for the six months to the end of October reached US$1.7m, versus losses of $3.5m in the same period of the previous year. The Olifant vodka producer said that it reduced sales costs by 59% during the half-year and has also continued to pay down debt.
However, net sales fell sharply, by 45% to $246,000 for the six-month period. The firm blamed the fall on a lack of working capital.
Drinks Americas said that it needs to raise extra funds in order to implement its business plan. "Our working capital and stockholders' deficits as of 31 October, 2010 indicate that we will need additional financing, which may take the form of equity or debt as we have converted certain liabilities into equity," said the group.
Volume sales of some of the group's major brands performed well in the half-year. Trump vodka increased volumes by 64%, while Old Whiskey River volumes tripled on the previous year.
Drinks Americas added that the majority of its distributors have placed repeat orders for Rheingold beer, which launched in the second quarter. "Our projected new orders in-hand for our planned expansion markets in 2011 now total approximately $300,000," it added.
Drinks Americas has expanded distribution of its Rheingold beer in the US state of Florida....
Drinks Americas has agreed in principle to sell a 49% stake in its business to California-based Worldwide Beverage Imports....
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