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Castle Brands’ Q2 benefits from whiskey boost
Castle Brands has reported 5.9% net sales gains for the second quarter of its 2017 fiscal year, bolstered by the “continued strong growth” of its whiskey portfolio.
The “continued strong growth” of Jefferson’s Bourbons helped boost Q2 results
The firm’s net sales hit US$19.6 million for the second quarter ending 30 September 2016, compared to US$18.5 million during the same period the previous year.
Total gross profit climbed 9.5% to US$7.7 million from the US$7.1 reported in the 2016 Q2.
Whiskey revenues rose 19.2% year-on-year, attributed to “solid revenue growth” of Jefferson’s Bourbons and Knappogue and Clontarf Irish whiskeys.
To maintain momentum in the Jefferson’s brand, the company said it had purchased an additional 1,800 barrels of aged Bourbon, in addition to maintaining its existing new-fill programmes.
“Continued strong growth of our more profitable brands, such as Jefferson’s and our Irish whiskeys, resulted in solid revenue growth and even greater growth in gross profit. This allowed us to increase income from operations, reduce net loss and increase EBITDA, as adjusted,” stated Richard J. Lampen, president and CEO of Castle Brands.
“We expect these trends of increasing sales and improving financial performance to continue over the balance of the fiscal year and beyond.”
John Glover, Castle Brands’ chief operating officer, added: “We plan to expand our wine finishes programme and introduce several other new Jefferson’s expressions over the balance of the fiscal year. We also increased our Irish whiskey offerings and expanded our barrel program for Knappogue.”
The company also attributed sales gains to the continuing cocktail trend. Goslings Stormy Ginger Beer year-on-year case sales increased 10.8% to approximately 360,000 cases, up from approximately 325,000.
“The growing popularity of ginger beer cocktails, including Goslings’ trademarked Dark ‘n Stormy, has been an important growth driver of Goslings Stormy Ginger Beer,” Glover added.
“Ginger beer sales have exceeded US$1.2 million cases, making Stormy Ginger Beer the best-selling premium ginger beer in America.
“We are also increasing the prominence of the Goslings brand through our sponsorship of the 35th America’s Cup. Goslings will have far more visibility and global reach than ever before with an enormous audience that goes well beyond the demographics of the sailing world.”
In June this year, Castle Brands reported a net sales increase of 25.7% during its fourth quarter bolstered by the brand’s whiskeys, Goslings Rum and Goslings Stormy Ginger Beer.