Quarterly Dividend declared of
Strong Q2 performance with Adjusted Revenue +9% vs last year (Reported Revenue +7%).
H1 Adjusted Revenue flat year on year (Reported Revenue -2%).
Quarterly dividend
The Corby Board of Directors is pleased to declare a dividend of
Business Environment
Driven by strong on-premise channel rebound, the Canadian spirits market grew in volume and value despite global supply chain volatility. Corby continued to achieve share gains on some of its owned and represented key strategic brands within their respective categories.
Financial Results
Adjusted Revenue for the second quarter increased +9%. Adjusted Revenue for the first half has now been successfully stabilized and returned to flat despite supply chain challenges. (Reported Revenue +7% Q2, -2% H1).
Sales, Marketing and Administration expenses increased +8% Q2 and +7% H1 with media and promotional investments accelerating behind our key strategic brands. Overhead expenses cycled the low comparison base of the prior year.
Q2 Adjusted Net Earnings increased +18%. H1 Adjusted Net Earnings declined -8% compared to an exceptionally high comparative base last year but showed strong growth versus pre-pandemic H1 fiscal year 2020 with a CAGR of +9.5%. (Reported Q2 Net Earnings grew +13%, Reported H1 Net Earnings declined -15%, CAGR of +5.4% vs pre pandemic H1 fiscal year 2020).
"I am pleased about Corby's robust second quarter performance demonstrating once again the resilience of our business. As pandemic restrictions eased, we have increased brand building activities to ensure sustained consumer demand. While global supply issues have led to intermittent and localized stock issues, I recognize the extraordinary efforts of our employees, production and supply colleagues and partners working together to ensure our consumers were able to find their favourite brands over the holiday season," noted
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
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.
The following table presents a reconciliation of Revenue to Adjusted Revenue, Earnings from Operations to Adjusted Earnings from Operations and Net Earnings to Adjusted Net Earnings to their most directly comparable financial measures for the three-and-six months ended
(in millions of Canadian dollars, | Three months ended | Six months ended | |||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | ||||||||
Revenue | $ | 45.2 | $ | 42.2 | $ | 3.0 | 7% | $ | 83.7 | $ | 85.6 | $ | (1.9) | (2%) | |
Adjusted for amortization of PR Representation rights | 2.6 | 1.8 | 0.8 | 45% | 5.2 | 3.6 | 1.6 | 44% | |||||||
Adjusted Revenue | 47.8 | 44.0 | 3.8 | 9% | 88.9 | 89.2 | (0.3) | (0%) | |||||||
Earnings from Operations | 12.0 | 10.6 | 1.4 | 13% | 21.7 | 25.4 | (3.7) | (14%) | |||||||
Adjusted for amortization of PR Representation rights | 2.6 | 1.8 | 0.8 | 45% | 5.2 | 3.6 | 1.6 | 44% | |||||||
Adjusted Earnings from Operations | 14.6 | 12.4 | 2.2 | 18% | 26.9 | 29.0 | (2.1) | (7%) | |||||||
Net earnings | 8.9 | 7.8 | 1.1 | 13% | 15.9 | 18.7 | (2.8) | (15%) | |||||||
Adjusted for amortization of PR Representation rights, net of tax impact | 1.9 | 1.4 | 0.5 | 46% | 3.8 | 2.6 | 1.2 | 44% | |||||||
Adjusted Net Earnings | 10.8 | 9.2 | 1.6 | 18% | 19.7 | 21.3 | (1.6) | (8%) | |||||||
Basic net earnngs per share | $ | 0.31 | $ | 0.28 | $ | 0.03 | 13% | $ | 0.56 | $ | 0.66 | $ | (0.10) | (15%) | |
Adjusted for amortization of PR Representation rights, net of tax impact | 0.07 | 0.04 | 0.03 | 46% | 0.13 | 0.09 | 0.04 | 44% | |||||||
Adjusted Basic, net earnings per share | 0.38 | 0.32 | 0.06 | 18% | 0.69 | 0.75 | (0.06) | (8%) | |||||||
Dilluted net earnngs per share | 0.31 | 0.28 | 0.03 | 13% | 0.56 | 0.66 | (0.10) | (15%) | |||||||
Adjusted for amortization of PR Representation rights, net of tax impact | 0.07 | 0.04 | 0.03 | 46% | 0.13 | 0.09 | 0.04 | 44% | |||||||
Adjusted Diluted, net earnings per share | 0.38 | 0.32 | 0.06 | 18% | 0.69 | 0.75 | (0.06) | (8%) |
Adjusted Revenue is equal to revenue for the period adjusted to remove the amortization related to the Pernod Ricard Representation Agreements.
Adjusted Earnings from Operations is equal to earnings from operations before interest and taxes for the period adjusted to remove the amortization related to the Pernod Ricard Representation Agreements.
Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the amortization related to the Pernod Ricard Representation Agreements, net of tax calculated using the effective tax rate. Adjusted earnings per share is computed in the same way as basic earnings per share.
CAGR is the compounded annual growth rate at which a quantity or amount grows over time.
Please refer to the "Non-GAAP Financial Measures" section of our MD&A for the three-and-six-months 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-six-months ended
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