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

QUARTERLY DIVIDEND

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 TREND

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.

FINANCIAL RESULTS

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.

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-month period ended

September 30, 2022

as well as Corby’s other public filings, available at

www.sedar.com

and at

Invest With Us

. 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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