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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
$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.
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
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.