August 16/Wilton, Conn./GLOBE NEWSWIRE -- Drinks Americas Holdings Ltd. reported financial results for the fiscal year ended April 30th, 2010.
For fiscal 2010, the company had net sales of approximately $890,000, a decrease of approximately $1,588,000 from net sales of $2,478,000 for fiscal 2009, as the company managed through difficult economic conditions and the loss of its credit facility a year ago. Drinks Americas has focused on its core brands that have sold well in these recessionary times, Olifant Vodka and Old Whiskey River Bourbon, and has prepared the launch of Rheingold Beer. The company has worked through its transition with its strategic venture with Mexcor International Wine and Spirits.
Selling, general and administrative expenses decreased 32% or approximately $1,846,000 to $3,874,000 in fiscal 2010 from $5,720,000 in fiscal 2009 due to cost containment, the impact of the company's strategic venture with Mexcor, and a reduction of overhead expenses and brand promotions.
The company was able to reduce its debt through year-end April 30, 2010, by a total of approximately $1,400,000 or 19% from $7,352,000 as of April 30, 2009, to $5,999,000 as of April 30, 2010, through a series of negotiations with suppliers and vendors reducing amounts owed, and by utilizing equity to negotiate the pay-down of payables.
The company had a net loss of $5,616,745 for the fiscal year ended 2010, or ($0.04) per basic and diluted share, compared to a net loss of $5,041,745, or ($0.06) per basic and diluted share for the fiscal year ended 2009. Contributing to this loss was a one-time non-recurring inventory write-off of $797,000 due to glass and inventory write downs.
Fiscal 2010 Developments
The company reduced its debt by 19%. Despite a volatile banking and business market, the company was able to negotiate with suppliers an overall reduction of its debt through April 30, 2010, of approximately $1,400,000. The company reduced its selling, general and administrative expenses by 32% due to a focus on cost containment and the beginning of its strategic agreement with Mexcor International Wine and Spirits. For the last six months of fiscal 2010, the company reduced its selling, general and administrative expenses by $2,546,000 or 79% versus the first six months of fiscal year 2010. For the first six months of fiscal 2010, selling, general and administrative expenses totaled approximately $3,210,000 and for the last six months of fiscal year, 2010 selling, general and administrative expenses totaled approximately $664,000. The company's strategic relationship with Mexcor has resulted in all Drinks Americas brands now being sold through Mexcor International Wine and Spirits. Sales have grown from 394 cases in the transition month of March to 2,400 cases in June and 5,200 cases in July. From the commencement of the Mexcor strategic agreement through the first quarter 2011, there have been over 10,000 cases of Company products produced and sold through the new strategic arrangements.
From the August 17, 2010, Prepared Foods' Daily News
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