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US: Castle Brands wine withdrawal hampers FY

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  • 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 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.

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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.


Sectors: Company results, Spirits

Companies: Castle Brands

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