Castle Brands Q2 boosted by whiskey brandsBy Nicola Carruthers
Castle Brands has reported a 6.5% net sales increase for the second quarter of its 2018 fiscal year, bolstered by the “continued strong growth” of its Jefferson’s Bourbon and Irish whiskey portfolio.
The firm’s net sales hit US$20.9 million for the second quarter ending 30 September 2017, compared to the US$19.6 million during the same period the previous year. The increase was primarily driven by the US sales growth of Jefferson’s Bourbons and Goslings Stormy Ginger Beer.
Total gross profit increased 10.6% to US$8.5 million for the second quarter of fiscal 2018, as compared to US$7.7 million for the comparable prior-year period.
Jefferson’s Bourbons, Knappogue and Clontarf Irish whiskeys, and the addition of the Arran scotch whiskey portfolio, led to a 21% increase in whiskey revenues for the first six months of fiscal 2018.
The company purchased an additional 770 barrels of aged Bourbon in the quarter to support the continued growth of Jefferson’s.
“We are again reporting strong growth of our lead brands, such as Jefferson’s, our Irish whiskeys and Goslings Stormy Ginger Beer,” said Richard J. Lampen, president and CEO of Castle Brands. “This resulted in solid revenue growth and even greater growth in gross profit, allowing us to increase income from operations, reduce net loss and increase EBITDA, as adjusted. We expect these trends of increasing sales and improving financial performance to continue over the balance of the fiscal year and beyond.”
In October, Castle Brands increased its stake in Copperhead Distillery Company – owner of Bourbon producer Kentucky Artisan Distillery – to 25%.
The company said that the acquisition “demonstrates our continued commitment to” Jefferson’s Bourbon.
Lampen continued: “Further, by expanding our credit facility with our existing lender, we believe we have positioned ourselves to support the continued growth of our entire portfolio.”
John Glover, executive vice president and chief operating officer, added: “The combination of our new fill whiskey program, coupled with opportunistic purchases of aged whiskies, enables us to build substantial reserves of aged bourbon to support continued strong growth of our Jefferson’s brand.
“We released a limited-edition Jefferson’s Presidential Select in the second quarter and plan to expand our wine finishes program in the coming months. We are also preparing the launch of the next voyages of our Jefferson’s Ocean Aged at Sea Bourbon, including Cask Strength and a “wheated” Ocean.”