TORONTO, Nov. 9, 2022
/CNW/ - Corby Spirit and Wine Limited ("Corby" or the
"Company") (TSX: CSW.A) (TSX: CSW.B) today announced financial
results for its fiscal 2023 first quarter for the period ended
September 30, 2022.
Strong start to the year with Q1 Revenue +7%
and Net Earnings +12% off a low base last year
Quarterly
Dividend declared of $0.22 per share,
normalizing to pre-pandemic levels
QUARTERLY DIVIDEND
The Corby Board of Directors is pleased to declare a dividend
of $0.22 per Voting Class A
Common Share and Non-Voting Class B Common Share of the Company.
This dividend is payable on December 9, 2022 to shareholders of record as
at the close of business on November
25 2022. Given the Company's performance the Board of
Directors has decided to exercise its discretion to declare a
quarterly dividend of $0.22,
normalizing to pre-pandemic levels and in excess of the dividend
policy of an annual amount equal to the greater of 90% of net
earnings per share of the preceding fiscal year ended June 30, 2022 or $0.60 per share.
CONSUMER TREND
Consumer demand remained resilient during Q1 with
off-premise retail channel value remaining flat despite
strong performance last year while on-premise channel is
recovering well and driving growth.
FINANCIAL RESULTS
Revenue for the first quarter was up
7% compared to the same period last year. Strong performance
this quarter was achieved by cycling a low comparison basis during
the same period last year. Revenue streams were comprised of:
- Solid domestic performance +6% from strong demand
and pricing initiatives;
- Strong commissions increase of +27% with
recovering shipments from delayed fulfillment of orders in the
previous quarter as well as cycling a low comparison basis last
year; and
- Adverse performance in international markets
-11% driven by supply chain challenges in the UK
market.
Marketing, sales and administrative expenses were
up 7% for the first quarter, as marketing and
promotional investment focused on increased media and brand equity
investments, while overhead expenditures were impacted by high
inflation and reinforced to support sales growth and transformation
momentum. This overall level of expenditures is catching up with
Q1 FY19 levels prior to the pandemic (-1% CAGR). See
"Non-GAAP Financial Measures".
As a result, Net Earnings increased by 12% for the
first quarter of Fiscal 2023 compared to the same period
last year. Those results are showing growth
versus Q1 FY19 levels prior to the pandemic by
+5% CAGR. See "Non-GAAP Financial Measures".
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"I am pleased to share that we have made a strong start to
the year despite the challenging global environment with high
inflation. Demand for Corby's spirits and wine portfolio remains
resilient, and our brands are well oriented to capture growth
opportunities. This strong quarterly performance however is not
indicative of the full year expected growth trend as our shipments
exceeded retail depletions this quarter, but are expected to
normalize throughout the year."
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, 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.
CAGR is the compounded annual growth rate at which a
quantity or amount grows over time. Throughout this Press Release,
CAGRs for Q1 FY23 were calculated with reference to the same
financial measure of Q1 FY19.
Please refer to the "Non-GAAP Financial Measures" section of our
MD&A for the three-month period ended September 30, 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-month period ended
September 30, 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