TORONTO, Nov. 9, 2022 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B) today announced financial results for its fiscal 2023 first quarter for the period ended September 30, 2022.
Strong start to the year with Q1 Revenue +7% and Net Earnings +12% off a low base last year
Quarterly Dividend declared of $0.22 per share, normalizing to pre-pandemic levels
The Corby Board of Directors is pleased to declare a dividend of $0.22 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company. This dividend is payable on December 9, 2022 to shareholders of record as at the close of business on November 25 2022. Given the Company's performance the Board of Directors has decided to exercise its discretion to declare a quarterly dividend of $0.22, normalizing to pre-pandemic levels and in excess of the dividend policy of an annual amount equal to the greater of 90% of net earnings per share of the preceding fiscal year ended June 30, 2022 or $0.60 per share.
Consumer demand remained resilient during Q1 with off-premise retail channel value remaining flat despite strong performance last year while on-premise channel is recovering well and driving growth.
Revenue for the first quarter was up 7% compared to the same period last year. Strong performance this quarter was achieved by cycling a low comparison basis during the same period last year. Revenue streams were comprised of:
- Solid domestic performance +6% from strong demand and pricing initiatives;
- Strong commissions increase of +27% with recovering shipments from delayed fulfillment of orders in the previous quarter as well as cycling a low comparison basis last year; and
- Adverse performance in international markets -11% driven by supply chain challenges in the UK market.
Marketing, sales and administrative expenses were up 7% for the first quarter, as marketing and promotional investment focused on increased media and brand equity investments, while overhead expenditures were impacted by high inflation and reinforced to support sales growth and transformation momentum. This overall level of expenditures is catching up with Q1 FY19 levels prior to the pandemic (-1% CAGR). See "Non-GAAP Financial Measures".
As a result, Net Earnings increased by 12% for the first quarter of Fiscal 2023 compared to the same period last year. Those results are showing growth versus Q1 FY19 levels prior to the pandemic by +5% CAGR. See "Non-GAAP Financial Measures".
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"I am pleased to share that we have made a strong start to the year despite the challenging global environment with high inflation. Demand for Corby's spirits and wine portfolio remains resilient, and our brands are well oriented to capture growth opportunities. This strong quarterly performance however is not indicative of the full year expected growth trend as our shipments exceeded retail depletions this quarter, but are expected to normalize throughout the year."
For further details, please refer to Corby's Management's Discussion and Analysis and consolidated financial statements and accompanying notes for the three-month period ended September 30, 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 Q1 FY23 were calculated with reference to the same financial measure of Q1 FY19.
Please refer to the "Non-GAAP Financial Measures" section of our MD&A for the three-month period ended September 30, 2022 as filed on SEDAR for further information regarding Non-GAAP measures.
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-month period ended September 30, 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
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