TORONTO, Feb. 8, 2023
/CNW/ - Corby Spirit and Wine Limited ("Corby" or the
"Company") (TSX: CSW.A) (TSX: CSW.B) today announced its
fiscal 2023 second quarter financial results for the three-month
period ended December 31, 2022
("Q2") and the six-month period ended December 31, 2022 ("H1").
Robust H1 performance with Revenue +3% and Net
Earnings +3%
Q2 Revenue +1% and Net Earnings -4%
reflecting solid domestic performance in inflationary
context
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
March 3, 2023 to shareholders
of record as at the close of business on February 23, 2023.
CONSUMER TREND
Consumer demand was dynamic during Q2 with the
on-premise channel still in a state of recovery driving the
value growth while the off-premise retail channel
remained flat in value, lapping a good performance last year.
FINANCIAL RESULTS
Revenue for the second quarter was up
+1% compared to the same period last year. This quarter's
performance was achieved by cycling a high comparison basis during
the same period last year. Revenue streams were comprised of:
- Solid domestic growth +4% reflecting strong consumer
demand for our Corby-owned brands and pricing initiatives, while
commissions (-3%) were impacted by shipments phasing
between the first two quarters:
- Declining performance in international markets
driven by supply chain challenges in the UK market.
Benefitting from a strong Q1, Revenue for the
first half was up +3% compared to the same period
last year, driven by:
- Strong domestic performance for both Case Goods
sales (+5%) and commissions (+11%) with
broad-based price increases across the portfolio; partially offset
by
- Adverse performance in international markets
driven by on-going supply chain challenges in the UK market.
Marketing, sales and administrative expenses were
reduced by -9% in Q2 resulting in H1
being marginally down (-1%), reflecting some marketing
and promotional investments phasing off a high base last year, and
a tight management of overhead expenditures.
Due to high inflation on cost of sales, Net Earnings
declined -4% in Q2 compared to the same period
last year but continued to show good growth of
+3% for the first half of the
year. These H1 results are particularly strong
versus H1 FY19 levels prior to the pandemic
(+5% CAGR). See "Non-GAAP Financial Measures".
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"We closed our first half with positive revenue growth and I
am thrilled to share that we have achieved a great market
performance over the must-win festive season, gaining share with
our key strategic brands. This performance reflects strong
programming and execution across our portfolio from all our teams.
Although the global environment remains challenging, I am confident
in our long-term value strategy and the resilience of our
business."
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 month period ended
December 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.
CAGR is the compounded annual growth rate at which a
quantity or amount grows over time. Throughout this Press Release,
CAGRs for H1 FY23 were calculated with reference to the same
financial measure of H1 FY19.
Please refer to the "Non-GAAP Financial Measures" section of our
MD&A for the three-and-six month period ended December 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-six month period ended
December 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