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Whiskey and rum boost Castle Brands Q4 sales
Castle Brands reported a net sales increase of 25.7% during its fourth quarter bolstered by “strong growth” of whiskeys, Goslings Rum and Goslings Stormy Ginger Beer.
Goslings Rum and Goslings Stormy Ginger Beer helped boost Castle Brands Q4 sales
The firm witnessed net sales grow to US$72.2 million in the three months leading to 31 March 2016 compared to US$57.5m during the same period the previous year.
Total gross profit was up 32.4% to US$28.6m compared to US$21.6m for the previous fiscal year.
Whiskey revenues rose 35.8% during Q4, attributed to “continued strong performance” of Jefferson’s Bourbons and Knappogue and Clontarf Irish whiskeys.
Goslings Rum enjoyed a 10.8% increase compared to 2015, performing strongly in the US and international markets.
Furthermore, the brand’s Stormy Ginger Beer broke the million case sale mark growing 55.9% to 1.115m cases from approximately 715,000 the prior year.
“This was an outstanding year for Castle Brands,” said Richard J. Lampen, president and chief executive officer of Castle Brands. “Continued growth of our more profitable brands, such as Jefferson’s Bourbon, Gosling’s Rum and our Irish Whiskeys, resulted in substantial revenue growth and even greater growth in gross profit.
“It also drove improved margins, decreased G&A as a percent of revenue, significantly reduced net loss and increased EBITDA, as adjusted.
“We expect that these growth trends and improving financial performance will continue.”
Castle Brands also increased its aged Bourbon stocks and entered two long-term new-fill agreements to grow its aged Bourbon reserves for Jefferson’s.
The company introduced new, upgraded packaging for its Goslings rums and Knappogue Castle Irish whiskeys.
John Glover, chief operating officer of Castle Brands, commented: “We used our aged Bourbon reserves to support increased sales of Jefferson’s and its brand extensions, such Jefferson’sOcean Aged at Sea.
“We also continue to add innovative expressions to increase sales and enhance the Jefferson’s brand. Our whiskey portfolio has also benefitted from additions to our Irish whiskey offerings and the initiation of a barrel program for Knappogue Castle Whiskey.
“We expect strong growth in whiskey sales to continue. Goslings’ sponsorship of the 35th America’s Cup Challenge continues to drive the visibility of Goslings rum and ginger beer.”