Eastside Distilling sales rise $1.5m in Q2
Portland-based Eastside Distilling saw a gross sales increase of US$1.5 million in the three months ending 30 June 2022.
Eastside Distilling saw its gross sales increase from US$3.6m to US$5.1m in its second quarter (Q2). This represents an increase of US$1.5m for Q2 2022, compared with the US$0.9m reaped for the same period in 2021.
Sales of spirits during the quarter benefitted from the ‘bulk sale’ of 651 barrels of Tennessee whiskey and Bourbon, the producer said, with gross proceeds reaching US$2.6 million.
“We built on the progress made in Q1 and expect to continue to improve results through the balance of the year,” said Geoffrey Gwin, Eastside Distilling CEO.
However, sales were offset by Eastside Distilling’s subsidiary Craft Canning + Printing, one of the north-west’s ‘leading’ independent mobile canning businesses.
The relocation of the business, higher supply chain costs, increased competition and the beginning of the company’s new digital can-printing business negatively impacted the business’s sales.
Gross margin increased to 30% in Q2, up from 26% in Q2 2021, primarily due to an improvement in spirits margins, which rose due to high realised prices of bulk whiskey, plus the benefit of the price increases from Q4 2021.
Eastside Distilling reported its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be US$0.4m for Q2 2022, compared with US$0.7m in Q2 of 2021.
Net losses for Q2 in 2021 and 2022 were the same, equalling US$1.8m.
This year, Eastside pointed towards the Redneck Riviera licence termination and the closing of its retail tasting room as contributing factors to this loss.
During Q2, Eastside delivered 7,431 cases of spirits with 4,400 of these cases represented by Portland Potato Vodka.
Earlier this year, Eastside Distilling’s CEO Paul Block resigned after 18 months in the role.