Corby Spirit and Wine Limited reports its fiscal 2023 third quarter results and announces dividend of $0.21 per share.

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Corby Spirit and Wine Limited reports its fiscal 2023 third quarter results and announces dividend of $0.21 per share.

Canada NewsWire

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

Cision View original content: http://www.newswire.ca/en/releases/archive/May2023/08/c1755.html

Copyright CNW Group 2023

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