Eastside Distilling sales drop in Q3

November 15, 2022



By Alice Brooker​

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Portland-based Eastside Distilling saw sales decrease by 6% to US$3.1 million in the three months ending 30 September 2022.

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Eastside Distilling's gross sales decreased to US$3.1m from US$3.3m in its third quarter (Q3) of 2022.

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The company attributed the loss in sales to lower spirits sales from Azuñia Tequila volume, which related to a reduction in discounting, a price increase and two inventory purchases in 2021.

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Gross profit for Q3 decreased to US$200,000 from US$900,000 for the same period last year.

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However, year-to-date gross sales have increased by more than US$1.8m from the previous year, with operating costs seeing a decrease by US$300,000.

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"We made substantial progress in digital printing and continued to implement key restructuring initiatives in our spirits business," said Geoffrey Gwin, Eastside's CEO.

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"I am proud of the team and see stronger results as we finish the year."

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During the firm's second quarter, Eastside saw a gross sales increase of US$1.5m in the three months ending 30 June 2022.

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Eastside said its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) 'improved' from the previous year, reaching US$1.1m in 2022 versus US$600,000 for the same period in 2021.

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Eastside Distilling's 'Craft Canning and Printing' business has seen growth in its digital printing customer base by 106% compared with Q2 ending 30 June 2022, with it serving more than 70 customers.

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Of the 7,459 cases of spirits Eastside Distilling delivered during Q3, Portland Potato Vodka represented 5,186 cases, and Azuñia Tequila represented 1,347 cases.

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The company ended its third quarter with US$400,000 cash, and subsequent to quarter-end raised US$4.5m, with proceeds used to repay US$3.3m short-term debt.

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