Net sales jumped 16.3% to a record $89.9 million for fiscal 2018, and net profit from operation soared 120.2% to $4.2 million. But the company recorded interest expense of $3.8 million, nearly three times its interest expense in 2017. As a result, Castle Brands narrowed its loss to $818,932 from $852,613.
Whiskey revenues increased 19.7% for fiscal 2018 from the prior-year due to continued strong growth of Jefferson’s bourbons and the Irish whiskies, and the addition of the Arran scotch whiskey portfolio.
Sales of Goslings Stormy Ginger Beer increased 32.7% to $26.5 million from $20.0 million in the prior year, with over 250,000 cases in first-year sales at Walmart.
Castle Brands said it expects to enjoy higher margins as a result of substantially lower federal excise taxes in future periods due to provisions in the newly enacted Craft Beverage Act.
“During the year we added to our substantial reserves of aged and new-fill bourbon to support the continued strong growth of our Jefferson’s brand, by acquiring $7.9 million in high-quality bourbon. We continue to expand our in-demand, ultra-premium Jefferson’s expressions, including Jefferson’s wine finishes, additional voyages of Jefferson’s Ocean Aged at Sea bourbon, including Cask Strength and a “Wheated” Ocean” and our Jefferson’s Reserve Old Rum Cask Finish Bourbon,” said John Glover, Executive Vice President and Chief Operating Officer of Castle Brands, adding, “We continue to find new and exciting opportunities for additional, inventive expressions.”
“The continued growing popularity of ginger beer cocktails, including Goslings’ trademarked “Dark ‘n Stormy”® cocktail, has been an important growth driver of our Goslings Stormy Ginger Beer. Ginger beer sales for fiscal 2018 exceeded 1.8 million cases, making Goslings Stormy Ginger Beer the best-selling premium ginger beer in America. The strong success of our first year at Walmart has led to opportunities at several other large retailers, including Target, and we look forward to continuing the overall growth of the brand,” Glover added.