Q3 Revenue +50% year-over-year and FYTD March Revenue +37% year-over-year
Adjusted Earnings from Operations +91% year-over-year in Q3 and +33% year-over-year in FYTD March (Reported Earnings from Operations +91% in Q3 and +21% in FYTD March)
Quarterly Dividend declared of
FINANCIAL RESULTS
The third quarter of the fiscal year reflected Revenue growing +50% compared to the same period last year, driven by:
- Strong Domestic Case Good performance (sales +9% excluding the contribution from
Ace Beverage Group Inc. (ABG)) with particularly positive value conversion, enhanced by the contribution of the ABG brands (Total Domestic sales +54% including ABG); - International markets' sales +82%, driven by continued sales through new market opportunities;
- Commissions +29% from the dynamic performance of key strategic imported brands.
Adjusted Earnings from Operations1 and Reported Earnings from Operations in the third quarter each grew +91% versus the same period last year. This growth reflects Revenue growth, including the contribution of the ABG brands, and diligent cost management with a focus on purposeful resource investment. This strong growth was achieved despite the addition of ABG marketing activities and overheads.
Benefitting from a strong Q3, Revenue for FYTD March was +37% compared to the same period last year, driven by:
- Solid Domestic Case Good sales excluding ABG +2%, despite a general slowdown in the Spirits market and stock level normalization at liquor boards. With the inclusion of the ABG brands, Domestic sales grew +45%;
- International markets' sales +44%, driven by shipments through new market opportunities and a rebound in Lamb's performance in the
UK ; - Resilient commissions on par with last year, despite a strong comparable in the prior year.
In FYTD March, marketing, sales and administrative expenses grew +20% when compared to the same period last fiscal year, reflecting new marketing activities and overheads related to ABG brands, combined with strategic investments behind key brands. As a result, adjusted Earnings from Operations1 in FYTD March grew +33% (+21% Reported) versus the same period last year.
Corby's President and Chief Executive Officer,
"I am proud of our portfolio's exceptional performance, which has been consistently outpacing the value growth of the overall Spirits and RTD market for six consecutive quarters. This achievement shows the effectiveness of our portfolio and sales execution strategy, which is focused on amplifying growth across our brands, while catering to diverse price points. Our commitment to execution excellence is yielding tangible results, evident in our robust financial performance this quarter and year-to-date.
Furthermore, I am excited by the journey of Corby and ABG towards leadership in
For further details on financial results for Q3 and FYTD March, please refer to Corby's Management's Discussion and Analysis and consolidated financial statements and accompanying notes for the three-and-nine month periods ended
MARKET TRENDS
The Total Beverage alcohol market (excluding Beer and Cider) was largely flat over the last nine months:
- Channel performance normalized with On-Premise sales now ahead of pre-pandemic levels;
- Spirits sales have seen a slight decline, but the RTD (Ready-To-Drink) category has exhibited solid mid-single digit growth;
- Value performance continues to outpace volume across all categories.
In the last three months, the market has shown early signs of positive momentum and we are cautiously optimistic on the outlook for the balance of calendar 2024.
QUARTERLY DIVIDEND
The Corby Board of Directors is pleased to declare a dividend of
QUARTERLY CONFERENCE CALL
Corby management will host a conference call on
1) NON-IFRS FINANCIAL MEASURES & RATIOS
Non-IFRS financial measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.
Management believes the non-IFRS 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 IFRS 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 Adjusted Earnings from Operations and Adjusted Net Earnings to their most directly comparable financial measures for the three-and-nine month periods ended
Three months ended | Nine months ended | ||||||||
(in millions of Canadian dollars, except per share amounts) | 2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | |
Earnings from Operations | $ 9.2 | $ 4.8 | $ 4.4 | 91 % | $ 32.0 | $ 26.5 | $ 5.5 | 21 % | |
Adjusted for transaction costs related to ABG acquisition | - | - | - | n/a | 0.1 | - | 0.1 | n/a | |
Adjusted for restructuring provisions | - | - | - | n/a | 0.5 | - | 0.5 | n/a | |
Adjusted for fees related to distributor transition | - | - | - | n/a | (0.3) | - | (0.3) | n/a | |
Adjustment for cost of sale related to business combinations fair value adjustments to inventory | - | - | - | n/a | 3.0 | - | 3.0 | n/a | |
Adjusted Earnings from Operations1 | 9.2 | 4.8 | 4.4 | 91 % | 35.4 | 26.5 | 8.9 | 33 % | |
Net earnings | 4.3 | 3.9 | 0.4 | 9 % | 19.1 | 20.3 | (1.2) | -6 % | |
Adjusted for transaction costs related to ABG acquisition | - | - | - | n/a | 0.1 | - | 0.1 | n/a | |
Adjusted for restructuring provisions | - | - | - | n/a | 0.4 | - | 0.4 | n/a | |
Adjusted for fees related to distributor transition | - | - | - | n/a | (0.2) | - | (0.2) | n/a | |
Adjustment for cost of sale related to business combinations fair value adjustments to inventory | - | - | - | n/a | 2.2 | - | 2.2 | n/a | |
Adjustment for ABG Non-controlling Interest Obligation | 1.4 | - | 1.4 | n/a | 1.4 | - | 1.4 | n/a | |
Adjusted Net Earnings1 | 5.6 | 3.9 | 1.7 | 44 % | 22.9 | 20.3 | 2.6 | 13 % | |
Per common share | |||||||||
- Basic net earnings per share | $ 0.15 | $ 0.14 | $ 0.01 | 9 % | $ 0.67 | $ 0.71 | $ (0.04) | -6 % | |
- Adjusted Basic net earnings per share | 0.20 | 0.14 | 0.06 | 44 % | 0.81 | 0.71 | 0.09 | 13 % | |
- Diluted net earnings | 0.15 | 0.14 | 0.01 | 9 % | 0.67 | 0.71 | (0.04) | -6 % | |
- Adjusted diluted net earnings | 0.20 | 0.14 | 0.06 | 44 % | 0.81 | 0.71 | 0.09 | 13 % | |
Basic net earnings per share | $ 0.15 | $ 0.14 | $ 0.01 | 9 % | $ 0.67 | $ 0.71 | $ (0.04) | -6 % | |
Adjusted for transaction costs related to ACE acquisition | - | - | - | n/a | 0.00 | - | 0.00 | n/a | |
Adjusted for restructuring provisions | - | - | - | n/a | 0.01 | - | 0.01 | n/a | |
Adjusted for fees related to distributor transition | - | - | - | n/a | (0.01) | - | (0.01) | n/a | |
Adjustment for cost of sale related to business combinations fair value adjustments to inventory | - | - | - | n/a | 0.08 | - | 0.08 | n/a | |
Adjustment for ABG Non-controlling Interest Obligation | 0.05 | - | 0.05 | n/a | 0.05 | - | 0.05 | n/a | |
Adjusted Basic, net earnings per share1 | 0.20 | 0.14 | 0.06 | 44 % | 0.81 | 0.71 | 0.09 | 13 % | |
Diluted net earnings per share | $ 0.15 | $ 0.14 | $ 0.01 | 9 % | $ 0.67 | $ 0.71 | $ (0.04) | -6 % | |
Adjusted for transaction costs related to ABG acquisition | - | - | n/a | $ 0.00 | - | 0.00 | n/a | ||
Adjusted for restructuring provisions | - | - | n/a | $ 0.01 | - | 0.01 | n/a | ||
Adjusted for fees related to distributor transition | - | - | n/a | $ (0.01) | - | (0.01) | n/a | ||
Adjustment for cost of sale related to business combinations fair value adjustments to inventory | - | - | - | n/a | $ 0.08 | - | 0.08 | n/a | |
Adjustment for ABG Non-controlling Interest Obligation | 0.05 | - | 0.05 | n/a | $ 0.05 | - | 0.05 | n/a | |
Adjusted Diluted, net earnings per share1 | $ 0.20 | $ 0.14 | $ 0.06 | 44 % | $ 0.81 | $ 0.71 | $ 0.09 | 13 % |
1) See "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios". |
Adjusted Earnings from Operations is equal to earnings from operations before interest and taxes for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments, costs and termination fees related to distributor transitions and restructuring provisions.
Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments, costs and termination fees related to distributor transitions, restructuring provisions, and interest charges related to NCI obligation, net of tax calculated using the effective tax rate.
Adjusted Basic Net Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.
Adjusted Diluted Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.
Please refer to the "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios" section of our MD&A for the three-and-nine month periods ended
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 period ended
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