Eastside Distilling sales drop in Q3
Source: The Spirits Business
November 15, 2022
By Alice Brooker
Portland-based Eastside Distilling saw sales decrease by 6% to US$3.1 million in the three months ending 30 September 2022.
Eastside Distilling's gross sales decreased to US$3.1m from US$3.3m in its third quarter (Q3) of 2022.
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.
Gross profit for Q3 decreased to US$200,000 from US$900,000 for the same period last year.
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.
"We made substantial progress in digital printing and continued to implement key restructuring initiatives in our spirits business," said Geoffrey Gwin, Eastside's CEO.
"I am proud of the team and see stronger results as we finish the year."
During the firm's second quarter, Eastside saw a gross sales increase of US$1.5m in the three months ending 30 June 2022.
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.
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.
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.
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.