Castle Brands Inc. (NYSE Amex: ROX), a developer and international marketer of premium and super-premium branded spirits and wine, today reported financial results for the three months ended June 30, 2011.
Operating Highlights for quarter ended June 30, 2011:
- Total case sales increased 19% to 70,119 cases compared to 58,810 cases in the prior fiscal year period
- Rum case sales increased 17% on the momentum of Gosling’s Rum®, our largest selling brand
- Liqueur case sales increased 19.4% led by Pallini Limoncello
- Vodka case sales increased 22% on the momentum of Boru vodka sales in the U.S.
- Quarterly U.S. case sales driven by organic growth and three new brands – Travis Hasse’s Original® Pie Liqueurs, A. de Fussigny ® Cognacs and Jefferson’s Rye
"The increased quarterly sales year-over-year confirms that our lineup of premium spirits brands is being well received by the market. This growth is being driven by increased case sales of some of our more profitable brands, such as Gosling’s rums and Pallini Limoncello. We continue to focus on expanding distribution, enhancing our consumer marketing activities and adding complementary brands to our portfolio in order to drive growth,” stated John Glover, Chief Operating Officer of Castle Brands.
"We are on the path towards long-term success, as we continue to reduce our quarterly loss year-over-year and drive increased total sales. The main driver of the lower costs is our strategy to streamline our corporate structure and effectively reduce distribution costs by focusing on the U.S. market and reducing overhead costs. We expect the full benefits of these cost savings efforts to be recognized in the current fiscal year,” stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands. “In June we completed a $7 million dollar private placement of Series A Preferred Stock which will support our capital needs to drive increased sales by expanding our distribution platform as well as making additions to our portfolio of premium brands.”