US: Drinks Americas sales soar, but income Trumped
Drinks Americas Holdings has seen sales soar in its fiscal third quarter, but income continues to linger in the red.
The company, which develops and markets brands including Trump super-premium vodka, said yesterday (14 March) that sales for the three months to 31 January were up by a massive 875% year-on-year to US$2.7m. Drinks Americas credited the performance to Trump vodka, which was launched in the US in the last two weeks of October.
Net loss for the quarter, however, came in at $5.6m compared to a net loss of $1.5m a year earlier. Around 30% of the loss was due to the extinguishment of debt, a non-cash charge of $1.65m. Excluding all non-cash charges, the net loss for the third quarter was $2.5m.
"We have accomplished a great deal over the past few months," said J. Patrick Kenny, president & CEO of Drinks Americas, said. "Trump has been available for roughly three and-a-half months, and during that time period we have already shipped 40,000 cases, totalling $4.3m in sales. We continue to build momentum with thousands of cases of additional orders in the pipeline.
"Additionally, as a result of our $8m raise and conversion of $3.4m debt to equity, we significantly strengthened our balance sheet to provide us with a solid platform for future growth."
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