TORONTO, May 12, 2022
/CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company")
(TSX: CSW.A) (TSX: CSW.B) today released its fiscal 2022 third
quarter results for the period ended March
31, 2022.
Quarterly Dividend declared of $0.24/share +14% vs last year.
Solid Q3 performance with Adjusted Revenue +4%
vs last year (Reported Revenue +2%).
9 months YTD Adjusted Revenue back to
growth +1% vs last year (Reported Revenue -1%).
Quarterly
dividend
The Corby Board of Directors is pleased to declare a dividend of
$0.24 per Voting Class A Common
Shares and Non-Voting Class B Common Shares of the Company, in line
with our dividend policy. This dividend is payable on June 10, 2022 to shareholders of record as at the
close of business on May 27, 2022.
Financial Results
Adjusted Revenue for the third quarter increased +4%. Adjusted
Revenue for the fiscal YTD is now back to growth and increased +1%,
despite supply chain challenges (Reported Revenue +2% Q3, -1%
fiscal YTD).
Sales, Marketing and Administration expenses increased +11%
fiscal YTD, cycling a very low comparison base, as such spend was
significantly constrained during the pandemic last year but is now
back to a more normative level.
As a result, our Net Earnings were impacted by the exceptionally
high comparative of base last year, while continuing to show solid
growth when compared to pre-pandemic results:
- Adjusted Net Earnings decreased -10% for the fiscal YTD
compared to last year (Reported Net Earnings -18% fiscal YTD)
- Adjusted Net Earnings are above fiscal YTD 2020 (i.e.,
pre-pandemic) by +7% CAGR (Reported Net Earnings are above fiscal
YTD 2020 by +2% CAGR)
"Despite the global environment that remains volatile, I am
encouraged by another solid quarter of top-line growth, with
underlying positive consumer demand and market trends. This has
given us confidence to progressively bring back our advertising and
promotional investment to pre-pandemic levels to fuel momentum on
our strategic brands and sustain future growth" noted Nicolas Krantz, CEO.
Corby's efforts last year were also recognized by the LCBO, its
largest customer, at its annual Elsie Awards event. Corby received
the Partner of the Year - Large Supplier/Agent award, in addition
to the Partnership Award – Spirits and Best Gift Item award.
"Being recognized for partnership with the LCBO through customer
and consumer centricity is a testament to the dedication, passion
and hard work of our people to overcome the challenges of the past
year and create value for all our stakeholders, contributing to our
year-to-date results," continued Mr. Krantz.
For further details, please refer to Corby's Management's
Discussion and Analysis and interim condensed consolidated
financial statements and accompanying notes for the three-and-nine
months ended March 31, 2022, 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.
The following table presents a reconciliation of Revenue to
Adjusted Revenue, 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-and-nine
months ended March 31, 2022, and
2021:
|
Three months
ended
|
|
Nine months
ended
|
|
Mar.
31,
|
Mar. 31,
|
|
|
|
Mar.
31,
|
Mar. 31,
|
|
|
(in millions of
Canadian dollars, except per share amounts)
|
2022
|
2021
|
$
Change
|
%
Change
|
|
2022
|
2021
|
$
Change
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
34.5
|
$
33.8
|
$
0.7
|
2%
|
|
$118.2
|
$119.4
|
$
(1.2)
|
(1%)
|
Adjusted for
amortization of PR Representation rights
|
2.6
|
1.8
|
0.8
|
44%
|
|
7.8
|
5.4
|
2.4
|
44%
|
Adjusted
Revenue1
|
37.1
|
35.6
|
1.5
|
4%
|
|
126.0
|
124.8
|
1.2
|
1%
|
|
|
|
|
|
|
|
|
|
|
Earnings from
Operations
|
6.0
|
8.4
|
(2.4)
|
(29%)
|
|
27.7
|
33.8
|
(6.1)
|
(18%)
|
Adjusted for
amortization of PR Representation rights
|
2.6
|
1.8
|
0.8
|
44%
|
|
7.8
|
5.4
|
2.4
|
44%
|
Adjusted Earnings
from Operations1
|
8.6
|
10.2
|
(1.6)
|
(16%)
|
|
35.5
|
39.2
|
(3.7)
|
(9%)
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
4.4
|
6.2
|
(1.8)
|
(30%)
|
|
20.3
|
24.9
|
(4.6)
|
(18%)
|
Adjusted for
amortization of PR Representation rights, net of tax
impact
|
1.9
|
1.3
|
0.6
|
42%
|
|
5.7
|
3.9
|
1.8
|
43%
|
Adjusted Net
Earnings1
|
6.3
|
7.5
|
(1.2)
|
(17%)
|
|
26.0
|
28.8
|
(2.8)
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
Basic net earnngs
per share
|
$0.15
|
$ 0.22
|
$
(0.07)
|
(30%)
|
|
$
0.71
|
$
0.87
|
$
(0.16)
|
(18%)
|
Adjusted for
amortization of PR Representation rights, net of tax
impact
|
0.07
|
0.04
|
0.03
|
42%
|
|
0.20
|
0.14
|
0.06
|
43%
|
Adjusted Basic, net
earnings per share1
|
0.22
|
0.26
|
(0.04)
|
(17%)
|
|
0.91
|
1.01
|
(0.10)
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
Dilluted net earnngs
per share
|
0.15
|
0.22
|
(0.07)
|
(30%)
|
|
0.71
|
0.87
|
(0.16)
|
(18%)
|
Adjusted for
amortization of PR Representation rights, net of tax
impact
|
0.07
|
0.04
|
0.03
|
42%
|
|
0.20
|
0.14
|
0.06
|
43%
|
Adjusted Diluted,
net earnings per share1
|
0.22
|
0.26
|
(0.04)
|
(17%)
|
|
0.91
|
1.01
|
(0.10)
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
1) See "Non-GAAP
Financial Measures".
|
|
|
|
|
|
|
|
|
|
Adjusted Revenue is equal to revenue for the period
adjusted to remove the amortization related to the Pernod Ricard
Representation Agreements.
Adjusted Earnings from Operations is equal to
earnings from operations before interest and taxes for the period
adjusted to remove the amortization related to the Pernod Ricard
Representation Agreements.
Adjusted Net Earnings is equal to net earnings for
the period adjusted to remove the amortization related to the
Pernod Ricard Representation Agreements, net of tax calculated
using the effective tax rate. Adjusted earnings per share is
computed in the same way as basic earnings per share.
CAGR is the compounded annual growth rate at which a
quantity or amount grows over time.
Please refer to the "Non-GAAP Financial Measures" section of our
MD&A for the three-and-nine-months ended March 31, 2022 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 -months ended
March 31, 2022 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