Corby Spirit and Wine Reports Second Quarter Results and Quarterly Dividend

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Corby Spirit and Wine Reports Second Quarter Results and Quarterly Dividend

Canada NewsWire

TORONTO, Feb. 11, 2021 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B) today announced financial results for its fiscal 2021 second quarter ended December 31, 2020.

The Corby Board of Directors today also declared a dividend of $0.21 per share payable on March 5, 2021 on the Voting Class A Common Shares and Non-Voting Class B Common Shares of the Company to shareholders of record as at the close of business on February 25, 2021. Despite the COVID-19 pandemic and an uncertain economic outlook, given the Company's performance and the strong cash position, the Board of Directors decided to exercise their discretion to declare a quarterly dividend aligned to Corby's dividend policy. The policy provides that, subject to business conditions and opportunities and appropriate adjustment for extraordinary events, regular dividends will be paid quarterly, on the basis of an annual amount equal to the greater of 90% of net earnings per share in the preceding fiscal year ended June 30, and $0.60 per share.

Consumer demand has remained resilient through the second quarter ended December 31, 2020 with gains in the retail channel continuing to offset the severe interruptions in the on-premise and travel retail channels. Some brands continue to be  more negatively impacted by effects of COVID-19 pandemic restrictions, while others were boosted by new opportunities in at-home consumption occasions and in ecommerce. Customers ordered strongly in the previous quarter to build stock ahead of key trading periods to avoid supply chain disruptions in a volatile pandemic impacted environment.

Following the unusually high shipments in the first quarter that resulted from liquor boards' stock-building, shipments of both Corby owned and Pernod Ricard brands softened in the quarter ended December 31, 2020. As a result, Corby saw an expected normalization of shipments of owned-brands which declined 1% in the second quarter, leading to year to date shipment volume growth of 2%.

While revenue for the second quarter decreased 3%, primarily led by a decrease in commission income from Pernod Ricard brands, year to date revenue for the first six months was up 4% for Corby owned brands, and with commission income growth of 7%, the Company delivered a solid overall revenue growth of 4%.    

In this volatile environment, Corby's advertising and promotion expenses reflect purposeful and focused investments behind our key brands and channels, in addition to overhead and discretionary expenses which were strictly controlled. Total marketing, sales and administration expenses decreased significantly by 11% in the three-months ended December 31, 2020 and by 12% in the six-months ended December 31, 2020,  reflecting changes in phasing compared to prior comparable periods, with normalization expected for the second half of the fiscal year.

As a result, net earnings for the second quarter were at $7.8 milion, flat to last year. Net earnings were up 30% to $18.7 million for the first half of fiscal 2021.

"This fiscal year we have seen significant shifts in consumer occasions and increased demand for spirits and wines. Our teams have adapted to ensure that changing consumer needs are met," noted Nicolas Krantz, President and Chief Executive Officer of Corby.

"I am pleased with Corby's strong performance in the first half of the fiscal year in this challenging and volatile environment, which saw solid revenue growth and high net earnings. We chose to focus our efforts and our investment on driving excellence in the most relevant channels and consumer occasions. This has resulted in some shifts to the profile and timing of our investments, but has led to depletion results that are competitive in key priority categories and share gains in our strategic battlegrounds.

In the second half of the fiscal year, we will start cycling the initial impacts of the COVID-19 pandemic. I have confidence in Corby's strategy and the fundamentals of our business," 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-six-months ended December 31, 2020, prepared in accordance with International Financial Reporting Standards.

About Corby
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.

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. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and, as such, actual results or expectations could differ materially from those anticipated in these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.

SOURCE Corby Spirit and Wine Limited

Cision View original content: http://www.newswire.ca/en/releases/archive/February2021/11/c5150.html

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