WILTON, Conn., Dec. 12, 2011 /PRNewswire/ -- Drinks Americas Holdings, Ltd., ("Drinks") (OTCBB: DKAM), a leading developer and marketer of beverage products, announced that the Company had a net sales increase of 758% and a 131% improvement in gross margin for the quarter ending October 31, 2011. Sales for the three months ending October 31, 2011 were $1,270,589 with a gross margin of 23.8% compared to the prior three months (ended July 31, 2011) of $148,080 with a gross margin of 10.3%. Drinks Americas had a net increase in sales of 758% and a 131% improvement in gross margin for the quarter.
Comparing the same period last year (three months ended October 31, 2010) Drinks Americas sales increased by $1,126,947 from $143,642 or 784% with margins of 23.8% compared to 20.8% same period last year (a 14.4% improvement).
On a year to date basis (six months ended October 31, 2011) Drinks Americas sales were up 477% reaching $1,418,669 compared to $245,898 for the same period last year. Margins improved 62.5%. Margins were 22.4% for the current period compared to 13.8% for the same period last year.Drinks Americas net loss for the three months ended October 31, 2011 decreased by 54.2% to $384,203 as compared to $850,415, an improvement of $466,212. Year to date (six months ended October 31, 2011) was $730,471 compared to $1,748,853 for the same period last year a $1,018,382 or a 58.3% improvement. The result is primarily attributable to the Company's increased sales volume coupled with gross margin improvements. The Company continued to extinguish debt with an additional $322,000 in gain recognized in settlement of debt. Also impacting results were onetime expenses in the quarter ending October 31, 2011 that were in excess of $380,000. Interest expenses for the quarter were reduced from $204,000 to $56,000. SGA over six months increased 6.2% however sales commission increases based on increased rate of sales had an $80,000 impact on the continued reduction of costs. Without increased commissions from incremental sales, SGA actually decreased 13%. The Company's growth was accelerated by access to inventory on favorable terms as a result of Drinks Americas' recent transaction with Worldwide Beverage Imports, LLC and the sales of KAH Tequila, Old Whiskey River Bourbon, and Rheingold Beer.