TORONTO, Nov. 8, 2023
/CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company")
(TSX: CSW.A) (TSX: CSW.B) today announced financial results
for its fiscal 2024 first quarter for the period ended September 30, 2023.
Q1 Revenue +43% with the addition of Ace
Beverage Group ("ABG") brands into our portfolio
Adjusted
Earnings from Operations up +36% (+9% Reported)
Quarterly
Dividend declared of $0.21 per
share
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,
consistent with the amount of last dividends payment. This dividend
is payable on December 8,
2023 to shareholders of record as at the close of
business on November 24, 2023.
MARKET TRENDS
The Spirits and RTDs market remains in low single digit value
growth driven by:
- Flat Retail channel
- On-Premise channel now normalizing following impacts of the
COVID-19 pandemic
- Value growth continuing to outpace volume across all
categories
- Ready to Drink ("RTD") segment showing good growth.
FINANCIAL RESULTS
The first quarter of the fiscal year ended with
Revenue growing +43% compared to the same period
last year, driven by:
- The contribution of the ABG portfolio of
brands, representing approximately 1/3rd of Q1
Revenue;
- International markets sales +38% driven by
shipments through new market opportunities;
- Domestic Case Good sales excluding ABG +1%
consistent with market trend, offset by;
- Commissions -17% on high comparison basis
(Q1 FY23 +27% vs. prior year) with the lapping of the holiday
season pre-ordering pattern from liquor boards seen last year to
mitigate the supply chain disruption in the market.
In the first quarter, marketing, sales and administrative
expenses increased +16% when compared to the same period
last fiscal year, reflecting new marketing activities and
overheads related to ABG brands, combined with
Wiser's package redesign and Polar Ice media
campaign.
As a result, adjusted Earnings from
Operations1 in the first quarter grew +36%
(+9% Reported) versus the same period last year despite continued
broad-based rising input costs.
During the quarter, Corby incurred interest charges of
$1.6m as a result of its credit
facilities and long-term debt linked to ABG acquisition, which
totaled $114.0m at the end of the
period.
The acquisition of ABG triggered certain IFRS accounting
treatments to adjust assets acquired in the business combination to
their fair value at the acquisition date, resulting in a charge to
costs of goods sold of $2.8 million
before taxes in the first quarter results.
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"I am pleased to share that we kept up the solid momentum of
our commercial performance as we have now outperformed the spirits
and RTDs market in value for four consecutive quarters, validating
our brands prioritization strategy initiated last year.
Overall, we have made a good start to the year despite signs
of market general slowdown, capturing growth opportunities notably
through the addition of ABG brands into our portfolio to generate
further value to our shareholders."
RETIREMENT OF
CHAIR
The Corby Board of Directors announced the
retirement of Mr. George McCarthy,
effective February 7, 2024. After 30
years of dedicated service, Mr. McCarthy will be stepping down from
his role as Chair and Director of the Company. During George's long
tenure, Corby experienced significant growth and success, achieved
numerous milestones, and maintained a strong commitment to
innovation.
"On behalf of Corby and many others, I'd
like to congratulate George on a fantastic career. From his early
days at Gallo, Seagram and Allied Domecq Spirits and Wine, George
joined the Corby Board in 1993, bringing his extensive experience
and deep knowledge of the industry. Since becoming Corby Chair
in 1999, George helped guide Corby through many transitions and key
moments. One can only hope to look back at a career with as much
pride and accomplishment as him! We wish him all the best on his
well-deserved retirement," said Mr.
Krantz.
"Over the last 30 years, I have witnessed
the incredible growth and transformation of the Company, and I am
immensely proud of what we have achieved together. As I step down
from my position. I am confident that Corby is in capable hands,
and I have full faith in the leadership team to steer us toward an
even more prosperous future," said Mr. McCarthy.
Mr. McCarthy will be greatly missed, and
the entire Corby family extends its heartfelt appreciation for his
outstanding contributions to the Company's success. As George
embarks on this new chapter, Corby remains committed to upholding
the values and principles that have been the foundation of its
growth.
The Board of Directors has initiated a
search to identify and appoint a new Chair.
For further details, please refer to Corby's Management's
Discussion and Analysis and consolidated financial statements and
accompanying notes for the three-month period ended September 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 period ended September 30, 2023, and 2022:
Adjusted Earnings from Operations is equal to earnings
from operations before interest and taxes for the period adjusted
to remove the costs incurred for business combination inventory
fair value adjustments.
Adjusted Net Earnings is equal to net earnings for the
period adjusted to remove the costs incurred for business
combination inventory fair value adjustments, net of tax calculated
using the effective tax rate. Adjusted net earnings per share and
adjusted diluted net earnings per share are computed in the same
way as basic net earnings per share and diluted net earnings per
share, respectively.
Please refer to the "Non-GAAP Financial Measures" section of our
MD&A for the three-month period ended September 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-month period ended
September 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