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

TORONTO, Feb. 8, 2023 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B) today announced its fiscal 2023 second quarter financial results for the three-month period ended December 31, 2022 ("Q2") and the six-month period ended December 31, 2022 ("H1"). 

Robust H1 performance with Revenue +3% and Net Earnings +3%
Q2 Revenue +1% and Net Earnings -4% reflecting solid domestic performance in inflationary context
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 March 3, 2023 to shareholders of record as at the close of business on February 23, 2023.

CONSUMER TREND

Consumer demand was dynamic during Q2 with the on-premise channel still in a state of recovery driving the value growth while the off-premise retail channel remained flat in value, lapping a good performance last year.

FINANCIAL RESULTS

Revenue for the second quarter was up +1% compared to the same period last year. This quarter's performance was achieved by cycling a high comparison basis during the same period last year. Revenue streams were comprised of:

• Solid domestic growth +4% reflecting strong consumer demand for our Corby-owned brands and pricing initiatives, while commissions (-3%) were impacted by shipments phasing between the first two quarters:
• Declining performance in international markets driven by supply chain challenges in the UK market.

Benefitting from a strong Q1, Revenue for the first half was up +3% compared to the same period last year, driven by:

• Strong domestic performance for both Case Goods sales (+5%) and commissions (+11%) with broad-based price increases across the portfolio; partially offset by
• Adverse performance in international markets driven by on-going supply chain challenges in the UK market.

Marketing, sales and administrative expenses were reduced by -9% in Q2 resulting in H1 being marginally down (-1%), reflecting some marketing and promotional investments phasing off a high base last year, and a tight management of overhead expenditures.

Due to high inflation on cost of sales, Net Earnings declined -4% in Q2 compared to the same period last year but continued to show good growth of +3% for the first half of the year. These H1 results are particularly strong versus H1 FY19 levels prior to the pandemic (+5% CAGR). See "Non-GAAP Financial Measures".

Corby's President and Chief Executive Officer, Nicolas Krantz, stated,

"We closed our first half with positive revenue growth and I am thrilled to share that we have achieved a great market performance over the must-win festive season, gaining share with our key strategic brands. This performance reflects strong programming and execution across our portfolio from all our teams. Although the global environment remains challenging, I am confident in our long-term value strategy and the resilience of our business."

For further details, please refer to Corby's Management's Discussion and Analysis and consolidated financial statements and accompanying notes for the three-and-six month period ended December 31, 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 H1 FY23 were calculated with reference to the same financial measure of H1 FY19.

Please refer to the "Non-GAAP Financial Measures" section of our MD&A for the three-and-six month period ended December 31, 2022 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-six month period ended December 31, 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

CORBY SPIRIT AND WINE LIMITED, Juan Alonso, Vice-President and Chief Financial Officer, Tel.: [phone], [email protected], www.Corby.ca