Heritage Distilling Company achieved profitability for the first time in 2024, the US spirits producer has announced.
The company generated a net income of $710,458 last year, versus a net loss of $36.8m in 2023.
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Net sales rose 5.4% to $8.4m. The growth was driven by a 28.8% increase in product sales, which Heritage Distilling said was largely due to the launch of the Special Operations Services product line in 2023.
Gross profit dipped by 1.4% year-on-year to $2.2m.
The company also achieved positive EBITDA for the first time, with that metric reaching $4.5m, compared to a loss of $32.8m in 2023.
Heritage Distilling co-founder and CEO Justin Stiefel said: “2024 was a transformative year for Heritage. We successfully transitioned from a private company to a publicly traded company with our IPO in November, marking our debut on Nasdaq.
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By GlobalData“This move strengthened our balance sheet, significantly reduced our liabilities, and put us in a position to grow significantly.”
Alongside achieving profitability last year, Heritage also entered Colorado, Kentucky, and Oklahoma and introduced new products.
Looking ahead, the spirits maker said it anticipates incurring operating losses and increased operating expenses as it invests in inventory, digital marketing.
The investment is intended to support the online direct-to-consumer sales of its “high-margin” Salute Series line of “super premium” whiskeys and overall business growth, the statement added.
In February, the company secured a $15m equity line of credit, gaining “access to more capital to help sustain and accelerate its growth”.
Additionally, management identified over $1m in annualised expense reductions for this year, following more than $1m in cost savings already achieved in 2024, as part of its efforts to become “more efficient, preserve cash and focus on products and activities leading to sustained profitability”.
Stiefel added: “With a solid financial foundation from which to build, Heritage is poised for continued expansion in 2025, with preliminary first quarter 2025 results already looking promising.”
In December, Heritage Distilling appointed two drinks industry stalwarts to board roles.
Former Starbucks COO Troy Alstead joined the company’s board of directors while Andrew Varga transitioned from his role as chief revenue officer to become director.
