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Castle Brands sales dip 2% in Q1
Castle Brands saw its sales drop 2% to US$22.6 million in the three months to 30 June 2019, despite increases from Jefferson’s Bourbon.
Despite increases for Jefferson’s Bourbon, Castle Brands’ sales dropped 2% in Q1
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the first quarter of fiscal 2020 was US$0.5m, compared to US$1.5m for the comparable prior-year period. Castle Brands attributed the drop to “the timing of shipments, particularly of Jefferson’s”.
Richard J Lampen, president and chief executive officer of Castle Brands, said: “We expect that strong growth in the balance of fiscal 2020 of key brands, such as Jefferson’s and Goslings Stormy Ginger Beer, will result in overall growth in revenue, gross profit, income from operations and EBITDA, as adjusted.”
In Q1, volume sales of Jefferson’s Bourbon were up by 4.8% to 22,250 cases. The brand’s sales for the 12 months to the end of June 2019 were 89,500 cases, an increase of 14.1%.
As a result of increased demand for Jefferson’s Bourbon, Castle Brands purchased US$2.1m of aged and new-fill Bourbon – bringing its total inventory to approximately 35,000 barrels.
John Glover, executive vice president and chief operating officer of Castle Brands, said: “Our goal for fiscal 2020 is to sell 100,000 cases of Jefferson’s, which is one of the top-five-selling premium small batch Bourbons.
“Moreover, Jefferson’s is the only leading small batch brand to command an average price greater than US$50 per bottle and the only leading small batch Bourbon not owned by a major spirits company.”
US sales of Goslings Stormy Ginger Beer were 467,000 cases in Q1, an increase of 4.9% over the comparable period last year.
In its latest full-year results, published in June, Castle Brands saw its net sales for fiscal 2019 reach US$95.8m – boosted by “continued growth” for Jefferson’s Bourbon.