• FY net losses worsen, hitting US$6.2m from $5.9m a year earlier
  • Net sales in 12 months to end of March jump by 16.9% to $41.4m
  • Operating losses also deteriorate: $4.4m versus $3.9m
  • Castle steps back from wine, takes $1.7m hit
Castle Brands saw losses widen in its latest fiscal year

Castle Brands saw losses widen in its latest fiscal year

Castle Brands has seen its decision to reduce support for its wine brands hit the bottom line in its full year, despite a healthy rise in sales.

The company said earlier today (2 July) that net losses in the 12 months to the end of March came in at US$6.2m, versus $5.9m a year earlier. Net sales in the period performed well, however, rising by 16.9% to $41.4m, but operating losses came in at $4.4m compared to $3.9m last year.

The losses marked a return to two years ago for Castle Brands: In fiscal 2011, net losses totalled $6.3m.

In the last four months of the company's fiscal year, net losses totalled $3.3m compared to $1.5m, because of a $1.7m loss on its wine assets. Castle said that it has looked to "reduce its sales and marketing efforts on its wine brands". Net sales in Q4 rose by 8% to $10.8m, as operating losses more than doubled - $2.7m against $952,000 a year earlier.

For the full year, Castle saw total volumes rise by 11.6% to 372,059 cases, and highlighted "strong growth" for the Jefferson's Bourbons and rye whiskies in the period. Gosling's Black Seal Rum exceeded 100,000 cases sold in the US in the 12-month period.

To read the company's official announcement, click here.