Net sales advanced 7% to a record $77.3 million, EBITDA soared 46% to $5.2 million, and net profit, as measured by GAAP rules turned positive, with the company recording a $500 million profit. A year earlier the company posted a $1.7 million loss for the fiscal year ended March 31.
Sales of Goslings Stormy Ginger Beer increased 23.3% to $20.0 million from $16.2 in the prior year due to strong sales in the U.S. and international markets, the company said. In March, Goslings Stormy Ginger Beer was added to the mixer section in approximately 4,500 Walmart stores in the U.S.
“This was an outstanding year for Castle Brands,” said Richard J. Lampen, president/ceo. “Continued growth of our more profitable brands, such as Jefferson’s, Goslings and our Irish whiskeys, resulted in strong revenue growth and even greater growth in gross profit. We reported positive net income for the fiscal year for the first time in the Company’s history and had a record level of EBITDA, as adjusted. We expect that these growth trends and improving financial performance will continue,” of Castle Brands.
“The acquisition of an additional 20.1% stake in our Gosling-Castle Partners (GCP) subsidiary was a very important milestone for Castle Brands. GCP holds the exclusive long-term export and distribution rights for Goslings Rums and Goslings Stormy Ginger Beer for all countries other than Bermuda.
“The transaction increased Castle Brands’ ownership of GCP to 80.1% and enabled consolidation for tax purposes. In addition, GCP’s exclusive export agreement with Gosling’s Export (Bermuda) Limited and exclusive distribution agreement with Castle Brands have been extended through March 31, 2030, with 10-year renewal terms thereafter,” Lampen added.
“We used our aged bourbon reserves to support increased sales of Jefferson’s and its brand extensions, such as Jefferson’s Ocean Aged at Sea. We also continue to add innovative expressions to increase sales and enhance the Jefferson’s brand. Jefferson’s is now one of the top five selling premium small batch bourbons and the only leading small batch brand not owned by a major spirits company. We are glad to see the strong depletion growth in the last fiscal year and are pleased to have bought aged bourbon and new fill to support future growth,” said John Glover, Chief Operating Officer.
“Our whiskey portfolio 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 Stormy Ginger Beer also continues to grow rapidly. It is now available in approximately 4,500 Walmart stores in the U.S. Goslings’ sponsorship of the 35th America’s Cup should continue to drive the visibility of Goslings rum and ginger beer,” Mr. Glover added.