First-quarter net losses widen by 1% to US$1.5m

Net sales up 15% to $12m

Q1 operating losses increase 14% to $519,000

Castle Brands has widened Q1 losses despite a rise in sales after it invested US$4.2m in aged Bourbon stocks.

Castle Brands said 2014 is to be a "turning point"

Net losses in the three months to the end of June rose by 1% to US$1.5m, the New York City-headquartered spirits producer said yesterday. Net sales were up 15% to $12m in the same period while Q1 operating losses increased by 14% to $519,000.

The company said that it bought the aged Bourbon in April as well as securing additional rye inventory to support the “continued rapid growth of the Jefferson's Bourbon brand”.

“Just as we continue to expand the Jefferson's umbrella, we plan to add additional offerings under our Knappogue and Clontarf Irish whiskey labels. This should provide additional growth opportunities for our whiskey sales," said John Glover, COO of Castle Brands.

The company increased its whiskey sales by 31% in the quarter.

Meanwhile, Gosling's Stormy Ginger Beer case sales increased 56% to about 162,000 cases.

In full-year results, Castle said fiscal 2014 was to be a “turning point” for the company after it posted a positive EBITDA for the first time in the company's history.

Castle Brands' share price fell by 6% in morning trading today.

To read the company's full results, click here.