TORONTO, Feb. 7, 2024
/CNW/ - Corby Spirit and Wine Limited ("Corby" or the
"Company") (TSX: CSW.A) (TSX: CSW.B) today announced its
fiscal 2024 second quarter financial results for the three-month
period ended December 31, 2023
("Q2") and the six-month period ended December 31, 2023 ("H1").
Q2 Revenue +23% and H1 Revenue +33%
benefitting from the addition of Ace Beverage Group ("ABG") brands
into our portfolio
Adjusted Earnings from Operations up +7% in Q2
and +21% in H1 (+1% and +5% Reported, respectively)
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 dividend payment. This dividend
is payable on March 13,
2024 to shareholders of record as at the close of
business on February 27, 2024.
MARKET TRENDS
Total Beverage alcohol market (excluding Beer and Cider)
experienced a slight decline over the past 6 months due to:
- Channel normalization with On-Premise channel back to
pre-COVID-19 pandemic levels;
- Spirits in slight decline but RTD (Ready-To-Drink) segment
showing solid mid-single digit growth;
- Value growth continuing to outpace volume across all
categories.
FINANCIAL RESULTS
The second quarter of the fiscal year reflected
Revenue growing +23% compared to the same period
last year, driven by:
- The contribution of the ABG portfolio of
brands;
- International markets' sales +18% driven by
continued sales through new market
opportunities;
- Commissions on par with last year;
- Domestic Case Good sales excluding ABG -1%
consistent with market trend.
As a result of investment phasing and addition of ABG marketing
activities and overheads, adjusted Earnings from
Operations1 in the second quarter grew +7%
(+1% Reported) versus the same period last year.
Benefitting from a strong Q1, Revenue for
the first half was up +33% compared to the same
period last year, driven by:
- The contribution of the ABG portfolio of brands,
contributing approx. one third of H1 Revenue;
- International markets' sales +27% driven by
shipments through new market opportunities;
- Domestic Case Good sales excluding ABG -1%
despite Spirits market general slowdown and stock level
normalization at liquor boards, offset by;
- Commissions -9% on high comparison basis
(H1 FY23 +11% vs. prior year) with the lapping of high inventory
levels from liquor boards seen last year to mitigate the supply
chain disruption in the market.
In the first half, marketing, sales and administrative
expenses increased +21% when compared to the same period
last fiscal year, reflecting new marketing activities and
overheads related to ABG brands, combined with
J.P. Wiser's package redesign, Polar Ice media
campaign and higher OND investments to sustain our
sell-outs.
As a result, adjusted Earnings from
Operations1 in H1 grew +21% (+5%
Reported) versus the same period last year despite continued
broad-based rising input costs.
During the first half, Corby incurred interest charges of
$3.1 million as a result of its
credit facilities and long-term debt linked to ABG acquisition,
which totaled $127.5 million 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
cost of goods sold of $3.0 million
before taxes in the first-half results.
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"We continued during these first 6 months to achieve a robust
market performance, including during the must-win festive season,
outperforming the Spirits and RTD market; Our competitive advantage
combines one of the most comprehensive portfolios of brands with
excellence in execution.
I am also particularly pleased with the integration and
contribution of ABG to Corby's results."
NEW CHAIR OF THE BOARD OF DIRECTORS
As announced on November 8, 2023,
Mr. George McCarthy, Corby Chair and
Director, has retired effective February 7,
2024. After review and discussion, the Board of Directors
announced today that current Corby independent director, Mr.
Lucio Di Clemente, has been
appointed as the new Corby Chair.
"It is an honour to succeed George as Chair of the Board and I
am very grateful for the opportunity to build upon his outstanding
contributions to Corby over his long tenure. As I take on this new
responsibility, I hope to continue George's legacy and commit to
maintaining the high standards that he set, to enable the continued
success of the company," said Mr. Di
Clemente.
"As I now retire from my role as Chair after 30 years, I look
forward to a future filled with new possibilities and achievements
for Corby. I am very confident that Lucio will continue to lead the
company, consistent with its values and principles, while bringing
fresh ideas, innovative solutions, and a renewed energy to the
position," said Mr. McCarthy.
For further details, please refer to Corby's Management's
Discussion and Analysis and consolidated financial statements and
accompanying notes for the three-and-six months period ended
December 31, 2023, prepared in
accordance with International Financial Reporting Standards.
Corby management will be participating in a live virtual
non-deal roadshow to discuss its latest investor presentation on
Friday, February 23, 2024, at
12:00 PM EST followed by a live
Q&A. Corby welcomes stakeholders, investors, and other
individual followers to register and attend this live event by
registering using the link
https://www.renmarkfinancial.com/companies/corby-spirit-and-wine-limited.
1) NON-IFRS FINANCIAL MEASURES & RATIOS
Non-IFRS financial measures and ratios do not have any
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other
issuers.
Management believes the non-IFRS 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 IFRS 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 Adjusted
Earnings from Operations and Adjusted Net Earnings to their most
directly comparable financial measures for the three-and-six months
period ended December 31, 2023, and
2022:
|
Three months
ended
|
|
Six months
ended
|
|
Dec.
31,
|
Dec.
31,
|
|
|
|
Dec.
31,
|
Dec.
31,
|
|
|
(in millions of
Canadian dollars, except per share amounts)
|
2023
|
2022
|
$
Change
|
%
Change
|
|
2023
|
2022
|
$
Change
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Earnings from
Operations
|
$
11.4
|
$
11.2
|
$
0.1
|
1 %
|
|
$
22.8
|
$
21.7
|
$
1.1
|
5 %
|
Adjusted for
transaction costs related to ACE acquisition
|
0.1
|
-
|
0.1
|
n/a
|
|
$
0.1
|
-
|
0.1
|
n/a
|
Adjusted for
restructuring provisions
|
0.6
|
-
|
0.6
|
n/a
|
|
0.6
|
-
|
0.6
|
n/a
|
Adjusted for fees
related to distributor transition
|
(0.3)
|
-
|
(0.3)
|
n/a
|
|
(0.3)
|
-
|
(0.3)
|
n/a
|
Adjustment for cost of
sale related to business combinations fair value adjustments to
inventory
|
0.2
|
-
|
0.2
|
n/a
|
|
3.0
|
-
|
3.0
|
n/a
|
Adjusted Earnings
from Operations1
|
12.0
|
11.2
|
0.7
|
7 %
|
|
26.2
|
21.7
|
4.5
|
21 %
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
7.3
|
$
8.6
|
$
(1.3)
|
-15 %
|
|
$
14.8
|
$
16.4
|
$
(1.6)
|
(10 %)
|
Adjusted for
transaction costs related to ACE acquisition
|
0.1
|
-
|
0.1
|
n/a
|
|
0.1
|
-
|
0.1
|
n/a
|
Adjusted for
restructuring provisions
|
0.4
|
-
|
0.4
|
n/a
|
|
0.4
|
-
|
0.4
|
n/a
|
Adjusted for fees
related to distributor transition
|
(0.2)
|
-
|
(0.2)
|
n/a
|
|
(0.2)
|
-
|
(0.2)
|
n/a
|
Adjustment for cost of
sale related to business combinations fair value adjustments to
inventory
|
0.2
|
-
|
0.2
|
n/a
|
|
2.2
|
-
|
2.2
|
n/a
|
Adjusted Net
Earnings1
|
7.8
|
8.6
|
(0.8)
|
-9 %
|
|
17.3
|
16.4
|
0.9
|
6 %
|
|
|
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
|
|
|
|
|
-
Basic net earnings per share
|
$
0.26
|
$
0.30
|
$
(0.04)
|
-15 %
|
|
$
0.52
|
$
0.58
|
$
(0.06)
|
-10 %
|
-
Adjusted Basic net earnings per share
|
$
0.27
|
$
0.30
|
$
(0.03)
|
-9 %
|
|
$
0.61
|
$
0.58
|
$
0.03
|
6 %
|
-
Diluted net earnings
|
$
0.26
|
$
0.30
|
$
(0.04)
|
-15 %
|
|
$
0.52
|
$
0.58
|
$
(0.06)
|
-10 %
|
-
Adjusted diluted net earnings
|
$
0.27
|
$
0.30
|
$
(0.03)
|
-9 %
|
|
$
0.61
|
$
0.58
|
$
0.03
|
6 %
|
|
|
|
|
|
|
|
|
|
|
1) See "Non-IFRS
Financial Measures" & "Non-IFRS Financial Ratios".
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
Dec.
31,
|
Dec.
31,
|
|
|
|
Dec.
31,
|
Dec.
31,
|
|
|
(in millions of
Canadian dollars, except per share amounts)
|
2023
|
2022
|
$
Change
|
%
Change
|
|
2023
|
2022
|
$
Change
|
%
Change
|
Basic net earnings
per share
|
$
0.26
|
$
0.30
|
$
(0.04)
|
-15 %
|
|
$
0.52
|
$
0.58
|
$
(0.06)
|
-10 %
|
Adjusted for
transaction costs related to ACE acquisition
|
0.00
|
-
|
0.00
|
n/a
|
|
0.00
|
-
|
0.00
|
n/a
|
Adjusted for
restructuring provisions
|
0.01
|
-
|
0.01
|
n/a
|
|
0.01
|
-
|
0.01
|
n/a
|
Adjusted for fees
related to distributor transition
|
(0.01)
|
-
|
(0.01)
|
n/a
|
|
(0.01)
|
-
|
(0.01)
|
n/a
|
Adjustment for cost of
sale related to business combinations fair value adjustments to
inventory
|
0.01
|
-
|
0.01
|
n/a
|
|
0.08
|
-
|
0.08
|
n/a
|
Adjusted Basic, net
earnings per share1
|
$
0.27
|
$
0.30
|
$
(0.03)
|
-9 %
|
|
$
0.61
|
$
0.58
|
$
0.03
|
6 %
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$
0.26
|
$
0.30
|
$
(0.04)
|
-15 %
|
|
$
0.52
|
$
0.58
|
$
(0.06)
|
-10 %
|
Adjusted for
transaction costs related to ACE acquisition
|
0.00
|
-
|
0.00
|
n/a
|
|
0.00
|
-
|
0.00
|
n/a
|
Adjusted for
restructuring provisions
|
0.01
|
-
|
0.01
|
n/a
|
|
0.01
|
-
|
0.01
|
n/a
|
Adjusted for fees
related to distributor transition
|
(0.01)
|
-
|
(0.01)
|
n/a
|
|
(0.01)
|
-
|
(0.01)
|
n/a
|
Adjustment for cost of
sale related to business combinations fair value adjustments to
inventory
|
0.01
|
-
|
0.01
|
n/a
|
|
0.08
|
-
|
0.08
|
n/a
|
Adjusted Diluted,
net earnings per share1
|
$
0.27
|
$
0.30
|
$
(0.03)
|
-9 %
|
|
$
0.61
|
$
0.58
|
$
0.03
|
6 %
|
|
|
|
|
|
|
|
|
|
|
1) See "Non-IFRS
Financial Measures" & "Non-IFRS Financial Ratios".
|
|
|
|
|
|
|
|
|
|
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, costs and termination fees
related to distributor transitions and restructuring
provisions.
Adjusted Net Earnings is equal to net earnings for the
period adjusted to remove the costs incurred for business
combination inventory fair value adjustments, costs and termination
fees related to distributor transitions and restructuring
provisions, net of tax calculated using the effective tax rate.
Adjusted Basic Net Earnings Per Share is computed in the
same way as basic net earnings per share and diluted net earnings
per share, respectively, using the aforementioned Adjusted Net
Earnings non-IFRS financial measure in place of reported Net
Earnings.
Adjusted Diluted Earnings Per Share is computed in the
same way as basic net earnings per share and diluted net earnings
per share, respectively, using the aforementioned Adjusted Net
Earnings non-IFRS financial measure in place of reported Net
Earnings.
Please refer to the "Non-IFRS Financial Measures" &
"Non-IFRS Financial Ratios" section of our MD&A for the
three-and-six months period ended December
31, 2023 as filed on SEDAR+ for further information
regarding Non-IFRS 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-six months period ended
December 31, 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, Olmeca
Altos® and Código 1530® tequilas,
Jefferson's™ and Rabbit Hole® bourbons,
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