TORONTO, May 8, 2023
/CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company")
(TSX: CSW.A) (TSX: CSW.B) today announced its fiscal 2023
third quarter financial results for the three-month period ended
March 31, 2023 ("Q3") and the
nine-month period ended March 31,
2023 ("FYTD March").
FYTD March performance resilient with Revenue
and Net Earnings flat vs LY
Q3 Revenue -7% and Net
Earnings -10% lapping high comparison basis amplified by supply
constraints
Quarterly Dividend declared of $0.21 per share, normalizing to 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, in
excess of the Company's dividend policy and normalizing to
pre-pandemic levels. This dividend is payable on
June 6, 2023 to shareholders
of record as at the close of business on May
23, 2023.
CONSUMER TREND
Consumer demand year-to-date remains resilient with progressive
normalization across the Off and On premise channels. The domestic
spirits category continues to show solid value growth against flat
volumes, driven by pricing and mix premiumization.
FINANCIAL RESULTS
Revenue for the fiscal year to date are in
line with the same period last year, driven by:
- Strong domestic performance for Case Goods
sales +5% with strong underlying demand and
broad-based price increases across the portfolio; offset by
- Adverse performance in international markets
-10% driven by on-going supply chain challenges in the UK
market.
- Commissions -4% impacted by Q3's performance on imported
brands after resilient results in the first half
Despite strong domestic case goods performance, revenue in the
third quarter was strongly impacted by cycling a high
comparison basis during the same period last year on
commissioned brands. Therefore, revenue declined
-7% compared to the same period last year, driven by:
- Continued strength in domestic Case Good sales +4%
reflecting strong consumer demand for our Corby-owned brands and
pricing initiatives; more than offset by
- Declining performance in international markets
-7% driven by supply chain challenges in the UK market.
- Commissions -34% impacted by several factors, including
the lapping of a high comparison basis, liquor board order phasing
and continued supply constraints for certain brands
Marketing, sales and administrative expenses
increased by +1% in Q3 resulting in FYTD
March remained flat reflecting some marketing and
promotional investments phasing off a high base last year, and a
tight management of overhead expenditures.
Net Earnings in the fiscal year to date are in line
versus the same period last year, and continue to reflect steady
growth versus FYTD March FY19 levels prior to
the pandemic (+3% CAGR). See "Non-GAAP Financial
Measures".
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"Our domestic portfolio is growing in value driven by our
strategic brands, notably our J.P. Wiser's Canadian Whisky and
Polar Ice vodka brand families, ahead of their respective
categories.," noted Mr. Krantz.
"Despite the on-going volatile environment with rising costs
and supply chain challenges, I am encouraged by Corby's
performance, delivering solid domestic case goods revenue growth in
the fiscal year to date and with positive net earnings growth when
compared to the pre-pandemic period."
For further details, please refer to Corby's Management's
Discussion and Analysis and consolidated financial statements and
accompanying notes for the three-and-nine month period ended
March 31, 2023, prepared in
accordance with International Financial Reporting Standards.
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.
CAGR is the compounded annual growth rate at which a
quantity or amount grows over time. Throughout this Press Release,
CAGRs for FYTD March FY23 were calculated with reference to the
same financial measure of FYTD March FY19.
Please refer to the "Non-GAAP Financial Measures" section of our
MD&A for the three-and-nine month period ended March 31, 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-nine month period ended
March 31, 2023 as well as Corby's
other public filings, available at www.sedar.com 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. 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