TORONTO, May 12, 2022 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B) today released its fiscal 2022 third quarter results for the period ended March 31, 2022.

Quarterly Dividend declared of $0.24/share +14% vs last year.

Solid Q3 performance with Adjusted Revenue +4% vs last year (Reported Revenue +2%).

 9 months YTD Adjusted Revenue back to growth +1% vs last year (Reported Revenue -1%).

Quarterly dividend

The Corby Board of Directors is pleased to declare a dividend of $0.24 per Voting Class A Common Shares and Non-Voting Class B Common Shares of the Company, in line with our dividend policy. This dividend is payable on June 10, 2022 to shareholders of record as at the close of business on May 27, 2022.  

Financial Results

Adjusted Revenue for the third quarter increased +4%. Adjusted Revenue for the fiscal YTD is now back to growth and increased +1%, despite supply chain challenges (Reported Revenue +2% Q3, -1% fiscal YTD).

Sales, Marketing and Administration expenses increased +11% fiscal YTD, cycling a very low comparison base, as such spend was significantly constrained during the pandemic last year but is now back to a more normative level.

As a result, our Net Earnings were impacted by the exceptionally high comparative of base last year, while continuing to show solid growth when compared to pre-pandemic results:

  • Adjusted Net Earnings decreased -10% for the fiscal YTD compared to last year (Reported Net Earnings -18% fiscal YTD)
  • Adjusted Net Earnings are above fiscal YTD 2020 (i.e., pre-pandemic) by +7% CAGR (Reported Net Earnings are above fiscal YTD 2020 by +2% CAGR)

"Despite the global environment that remains volatile, I am encouraged by another solid quarter of top-line growth, with underlying positive consumer demand and market trends. This has given us confidence to progressively bring back our advertising and promotional investment to pre-pandemic levels to fuel momentum on our strategic brands and sustain future growth" noted Nicolas Krantz, CEO.

Corby's efforts last year were also recognized by the LCBO, its largest customer, at its annual Elsie Awards event. Corby received the Partner of the Year - Large Supplier/Agent award, in addition to the Partnership Award – Spirits and Best Gift Item award.

"Being recognized for partnership with the LCBO through customer and consumer centricity is a testament to the dedication, passion and hard work of our people to overcome the challenges of the past year and create value for all our stakeholders, contributing to our year-to-date results," 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-nine months ended March 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.

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-nine months ended March 31, 2022, and 2021:


Three months ended


Nine months ended


Mar. 31,

Mar. 31,




Mar. 31,

Mar. 31,



(in millions of Canadian dollars, except per share amounts)

2022

2021

 $ Change 

% Change


2022

2021

 $ Change 

% Change











Revenue

$  34.5

$  33.8

$     0.7

2%


$118.2

$119.4

$    (1.2)

(1%)

Adjusted for amortization of PR Representation rights

2.6

1.8

0.8

44%


7.8

5.4

2.4

44%

Adjusted Revenue1

37.1

35.6

1.5

4%


126.0

124.8

1.2

1%











Earnings from Operations

6.0

8.4

(2.4)

(29%)


27.7

33.8

(6.1)

(18%)

Adjusted for amortization of PR Representation rights

2.6

1.8

0.8

44%


7.8

5.4

2.4

44%

Adjusted Earnings from Operations1

8.6

10.2

(1.6)

(16%)


35.5

39.2

(3.7)

(9%)











Net earnings

4.4

6.2

(1.8)

(30%)


20.3

24.9

(4.6)

(18%)

Adjusted for amortization of PR Representation rights, net of tax impact

1.9

1.3

0.6

42%


5.7

3.9

1.8

43%

Adjusted Net Earnings1

6.3

7.5

(1.2)

(17%)


26.0

28.8

(2.8)

(10%)











Basic net earnngs per share

$0.15

$ 0.22

$  (0.07)

(30%)


$ 0.71

$  0.87

$   (0.16)

(18%)

Adjusted for amortization of PR Representation rights, net of tax impact

0.07

0.04

0.03

42%


0.20

0.14

0.06

43%

Adjusted Basic, net earnings per share1

0.22

0.26

(0.04)

(17%)


0.91

1.01

(0.10)

(10%)











Dilluted net earnngs per share

0.15

0.22

(0.07)

(30%)


0.71

0.87

(0.16)

(18%)

Adjusted for amortization of PR Representation rights, net of tax impact

0.07

0.04

0.03

42%


0.20

0.14

0.06

43%

Adjusted Diluted, net earnings per share1

0.22

0.26

(0.04)

(17%)


0.91

1.01

(0.10)

(10%)











1) See "Non-GAAP Financial Measures".










 

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-nine-months ended March 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-nine -months ended March 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

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