TORONTO, Aug. 23,
2023 /CNW/ - Corby Spirit and Wine Limited ("Corby"
or the "Company") (TSX: CSW.A) (TSX: CSW.B) today announced
financial results for its fiscal 2023 fourth quarter and year-ended
period ended June 30, 2023.
Q4 Revenue +7% and Full Year FY23 Revenue +2%
underpinned by solid commercial performance;
Quarterly
Dividend declared of $0.21 per share,
normalizing to FY19 pre-pandemic levels.
QUARTERLY DIVIDEND
The Corby Board of Directors is pleased to declare a dividend
of $0.21 per Voting Class A
Common Share and Non-Voting Class B Common Share of the Company,
normalizing to FY19 pre-pandemic levels. This dividend is
payable on September 29,
2023 to shareholders of record as at the close of
business on September 15, 2023.
SPIRITS MARKET TREND
The domestic spirits market continued to show solid value
growth, driven by pricing and mix premiumization while seeing a
normalization across the Off and On-premise channels to FY19
pre-pandemic levels.
FINANCIAL RESULTS
The fourth quarter of the fiscal year ended with
Revenue growing +7% compared to the same period
last year, driven by:
- Positive shipments phasing resulting in international
markets sales +57% due to new markets opportunities and
continued US market development with our flagship brand J.P.
Wiser's;
- Commissions +17% reflecting solid commercial performance
and pricing strategy, partly offset by;
- Softer domestic Case Good sales -1%.
As a result, full year Revenue for the fiscal year
2023 grew by +2% versus last year, driven by:
- Robust performance for domestic Case Goods
sales +3% with strong underlying demand and price
increases across the portfolio;
- Strong Export sales +9% driven by premiumization
in the US and opportunities in new markets;
- Commissions +1% with positive momentum on spirits
partially offset by softer trends on wines and supply chain
disruptions.
In the fourth quarter, marketing, sales and administrative
expenses increased +9% reflecting investments in our key brands and
organizational streamlining costs. Marketing, sales and
administrative expenses increased moderately +2%
in full-year Fiscal 2023 vs. last year, reflecting tight
resource management focused on key strategic brands and
priorities.
Adjusted Net Earnings1 in the fourth quarter declined
-6% as result of rapidly rising costs (Reported Net Earnings -48%
in the fourth quarter versus the same period last year). Adj.
Net Earnings1 in the fiscal year 2023
slightly declined by -1% versus the same period last
year (Reported Net Earnings -6% in full year FY23 versus last
year), affected by unprecedented rising input
costs (+9% in full year FY23 versus last year) in the global
inflationary environment.
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"Our brands continue to resonate strongly with consumers and
I am proud to close our fiscal year with our total spirits
portfolio outperforming the market in a very competitive and
volatile environment. Our performance validates our pricing
strategy, portfolio prioritization and excellence in execution from
all of our teams.
Since the onset of the pandemic, we successfully overcame a
number of challenges while building solid foundations for the
future through investments in our brands, people and capabilities.
The recent acquisition of the Ace Beverage Group, with its
prominent position in the fast-growing and highly attractive RTD
segment, is a unique opportunity to enhance our growth
profile.
I am excited to lead Corby into this new chapter as we are
well positioned to continue creating value for our
shareholders."
For further details, please refer to Corby's Management's
Discussion and Analysis and consolidated financial statements and
accompanying notes for the three-months and year-ended June 30, 2023, prepared in accordance with
International Financial Reporting Standards.
1) NON-GAAP FINANCIAL
MEASURES
Non-GAAP financial measures do not have any standardized meaning
prescribed by GAAP and are therefore unlikely to be comparable to
similar measures presented by other issuers.
Management believes the non-GAAP measures defined above are
important supplemental measures of operating performance and
highlight trends in the core business that may not otherwise be
apparent when relying solely on GAAP financial measures.
Management believes that these measures allow for assessment of
the Company's operating performance and financial condition on a
basis that is more consistent and comparable between reporting
periods.
The following table presents a reconciliation of Earnings from
Operations to Adjusted Earnings from Operations and Net Earnings to
Adjusted Net Earnings to their most directly comparable financial
measures for the three-months and year ended June 30, 2023, and 2022:
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Three months ended
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Year ended
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June 30,
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June 30,
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June 30,
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June 30,
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(in millions of Canadian dollars,except per share
amounts)
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2023
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2022
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$ Change
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%Change
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2023
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2022
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$ Change
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% Change
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Earnings from Operations
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$
1.8
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$
5.0
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(3.2)
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(64 %)
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28.3
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32.7
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(4.3)
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(13 %)
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Adjusted for
transaction costs related to ACE acquisition
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3.0
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-
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3.0
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n.a.
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3.0
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-
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3.0
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n.a.
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Adjusted for
restructuring provisions
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0.7
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-
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0.7
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n.a.
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0.7
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-
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0.7
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n.a.
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Adjusted for fees
related to distributor transition
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0.4
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-
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0.4
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n.a.
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0.4
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-
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0.4
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n.a.
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Adjusted for impairment
charge
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-
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2.1
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(2.1)
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(100 %)
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-
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2.1
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(2.1)
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(100 %)
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Adjusted Earnings from
Operations
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5.9
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7.1
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(1.2)
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(17 %)
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32.4
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34.8
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(2.4)
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(7 %)
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Earning from operations, per
share
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$
0.06
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$
0.17
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$
(0.11)
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(64 %)
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$
1.00
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$
1.15
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$
(0.15)
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(13 %)
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Adjusted for
transaction costs related to ACE acquisition
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0.10
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-
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0.10
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n.a.
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0.10
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-
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0.10
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n.a.
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Adjusted for
restructuring provisions
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0.02
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-
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0.02
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n.a.
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0.02
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-
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0.02
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n.a.
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Adjusted for fees
related to distributor transition
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0.01
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-
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0.01
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n.a.
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0.01
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-
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0.01
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n.a.
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Adjusted for impairment
charge
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-
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0.07
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(0.07)
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(100 %)
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-
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0.07
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(0.07)
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(100 %)
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Adjusted earrning from operations, per
share
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$
0.21
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$
0.25
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$
(0.04)
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(17 %)
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$
1.14
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$
1.22
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$
(0.08)
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(7 %)
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Net earnings
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1.6
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3.1
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(1.5)
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(48 %)
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22.0
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23.4
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(1.4)
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(6 %)
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Adjusted for
transaction costs related to ACE acquisition
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2.5
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-
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2.5
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n.a.
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2.5
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-
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2.5
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n.a.
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Adjusted for
restructuring provisions
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0.5
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-
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0.5
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n.a.
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0.5
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-
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0.5
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n.a.
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Adjusted for fees
related to distributor transition
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0.3
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-
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0.3
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n.a.
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0.3
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-
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0.3
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n.a.
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Adjusted for impairment
charge
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-
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2.1
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(2.1)
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(100 %)
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-
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2.1
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(2.1)
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(100 %)
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Adjusted Net Earnings
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4.9
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5.3
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(0.3)
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(6 %)
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25.3
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25.5
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(0.3)
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(1 %)
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Per common
share
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-
Basic net earnings
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$
0.06
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$
0.11
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$
(0.05)
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(48 %)
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$
0.77
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$
0.82
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$
(0.05)
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(6 %)
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-
Diluted net earnings
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$
0.06
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$
0.11
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$
(0.05)
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(48 %)
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$
0.77
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$
0.82
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$
(0.05)
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(6 %)
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Basic net earnings per share
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$
0.06
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$
0.11
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$
(0.05)
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(48 %)
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$
0.77
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$
0.82
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$
(0.05)
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(6 %)
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Adjusted for
transaction costs related to ACE acquisition
|
0.09
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-
|
0.09
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n.a.
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|
0.09
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-
|
0.09
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n.a.
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Adjusted for
restructuring provisions
|
0.02
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-
|
0.02
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n.a.
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|
|
0.02
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-
|
0.02
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n.a.
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Adjusted for fees
related to distributor transition
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0.01
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-
|
0.01
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n.a.
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|
0.01
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-
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0.01
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n.a.
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Adjusted for impairment
charge
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-
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0.07
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(0.07)
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(100 %)
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-
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0.07
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(0.07)
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(100 %)
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Adjusted Basic, net earnings per
share
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$
0.18
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$
0.18
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$
-
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(6 %)
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$
0.89
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$
0.89
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$
-
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(1 %)
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Dilluted net earnings per share
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$
0.06
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$
0.11
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$
(0.05)
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(48 %)
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$
0.77
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$
0.82
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$
(0.05)
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(6 %)
|
Adjusted for
transaction costs related to ACE acquisition
|
0.09
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-
|
0.09
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n.a.
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|
0.09
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-
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0.09
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n.a.
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Adjusted for
restructuring provisions
|
0.02
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-
|
0.02
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n.a.
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|
0.02
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-
|
0.02
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n.a.
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Adjusted for fees
related to distributor transition
|
0.01
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-
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0.01
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n.a.
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|
|
0.01
|
-
|
0.01
|
n.a.
|
Adjusted for impairment
charge
|
-
|
0.07
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(0.07)
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(100 %)
|
|
|
-
|
0.07
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(0.07)
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(100 %)
|
Adjusted Diluted, net earnings per
share
|
$
0.18
|
$
0.18
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$
-
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(6 %)
|
|
|
$
0.89
|
$
0.89
|
$
-
|
(1 %)
|
|
|
|
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`
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Adjusted Earnings from Operations is equal to
earnings from operations before interest and taxes for the period
adjusted to remove the transaction costs related to the acquisition
of Ace Beverage Group ("Ace"), costs and termination fees related
to distributor transitions, restructuring provisions and in FY22 a
non-cash impairment charge related to the Foreign Affair
Winery.
Adjusted Net Earnings is equal to net earnings for the
period adjusted to remove the transaction costs related to the
acquisition of Ace, costs and termination fees related to
distributor transitions, restructuring provisions, net of the
associated tax impact and in the prior year the non-cash impairment
charge related to the Foreign Affair Winery. Adjusted earnings per
share and adjusted diluted earnings per share are computed in the
same way as basic earnings per share.
Please refer to the "Non-GAAP Financial Measures" section of our
MD&A for the three-months and year ended June 30, 2023 as filed on SEDAR+ for further
information regarding Non-GAAP measures.
FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements,
including statements concerning possible or assumed future results
of Corby's operations. Forward-looking statements typically are
preceded by, followed by or include the words "believes",
"expects", "anticipates", "estimates", "intends", "plans" or
similar expressions. These statements are being provided for the
purposes of providing information about management's current
expectations and plans and allowing investors and others to get a
better understanding of our anticipated financial position, results
of operations and operating environment. Readers are cautioned that
such information may not be appropriate for other purposes and are
not guarantees of future performance. Although Corby believes that
the forward-looking information in this press release is based on
information, assumptions and beliefs which are current, reasonable
and complete, this information is necessarily subject to a number
of factors, risks and uncertainties that could cause actual results
to differ materially from management's expectations and plans as
set forth in such forward-looking information. For more information
on the risks, uncertainties and assumptions that could cause
Corby's actual results to differ from current expectations, refer
to the Risks and Risk Management section of our Management's
Discussion and Analysis for the three-and-twelve-month period ended
June 30, 2023 as well as Corby's
other public filings, available at www.sedarplus.ca and at
https://corby.ca/en/investors/. Corby does not undertake to update
any forward-looking information, whether written or oral, that may
be made from time to time by it or on its behalf, to reflect new
information, future events or otherwise, except as is required by
applicable securities laws. Accordingly, readers should not place
undue reliance on forward-looking statements. All financial results
are reported in Canadian dollars.
About Corby Spirit and Wine
Limited
Corby Spirit and Wine Limited is a leading Canadian
manufacturer, marketer and distributor of spirits and imported
wines. Corby's portfolio of owned-brands includes some of the most
renowned brands in Canada,
including J.P. Wiser's®, Lot 40®, and Pike Creek® Canadian
whiskies, Lamb's® rum, Polar Ice® vodka and McGuinness® liqueurs,
as well as the Ungava® gin, Cabot Trail® maple-based liqueurs and
Chic Choc® spiced rum and Foreign Affair® wines and Cottage
Springs® ready-to-drink beverages. Through its affiliation with
Pernod Ricard S.A., a global leader in the spirits and wine
industry, Corby also represents leading international brands such
as ABSOLUT® vodka, Chivas Regal®, The Glenlivet® and Ballantine's®
Scotch whiskies, Jameson® Irish whiskey, Beefeater® gin, Malibu®
rum, Kahlúa® liqueur, Mumm® champagne, and Jacob's Creek®, Wyndham
Estate®, Stoneleigh®, Campo Viejo®, and Kenwood® wines. Corby is a
publicly traded company based in Toronto,
Ontario, and is listed on the Toronto Stock Exchange under
the trading symbols CSW.A and CSW.B. For further information,
please visit our website or follow us on LinkedIn.
SOURCE Corby Spirit and Wine Limited