CORBY SPIRIT AND WINE LIMITED Q1 Revenue +43% with the addition of
Adjusted Earnings from Operations up +36% (+9% Reported)
Quarterly Dividend declared of
The Corby Board of Directors is pleased to declare a dividend of
The Spirits and RTDs market remains in low single digit value growth driven by:
- Flat Retail channel
- On-Premise channel now normalizing following impacts of the COVID-19 pandemic
- Value growth continuing to outpace volume across all categories
- Ready to Drink ("RTD") segment showing good growth.
The first quarter of the fiscal year ended with Revenue growing +43% compared to the same period last year, driven by:
- The contribution of the ABG portfolio of brands, representing approximately 1/3rd of Q1 Revenue;
- International markets sales +38% driven by shipments through new market opportunities;
- Domestic Case Good sales excluding ABG +1% consistent with market trend, offset by;
- Commissions -17% on high comparison basis (Q1 FY23 +27% vs. prior year) with the lapping of the holiday season pre-ordering pattern from liquor boards seen last year to mitigate the supply chain disruption in the market.
In the first quarter, marketing, sales and administrative expenses increased +16% when compared to the same period last fiscal year, reflecting new marketing activities and overheads related to ABG brands, combined with Wiser's package redesign and Polar Ice media campaign.
As a result, adjusted Earnings from Operations1 in the first quarter grew +36% (+9% Reported) versus the same period last year despite continued broad-based rising input costs.
During the quarter, Corby incurred interest charges of
The acquisition of ABG triggered certain IFRS accounting treatments to adjust assets acquired in the business combination to their fair value at the acquisition date, resulting in a charge to costs of goods sold of
Corby's President and Chief Executive Officer,
"I am pleased to share that we kept up the solid momentum of our commercial performance as we have now outperformed the spirits and RTDs market in value for four consecutive quarters, validating our brands prioritization strategy initiated last year.
Overall, we have made a good start to the year despite signs of market general slowdown, capturing growth opportunities notably through the addition of ABG brands into our portfolio to generate further value to our shareholders."
The Corby Board of Directors announced the retirement of Mr.
"On behalf of Corby and many others, I'd like to congratulate George on a fantastic career. From his early days at Gallo,
"Over the last 30 years, I have witnessed the incredible growth and transformation of the Company, and I am immensely proud of what we have achieved together. As I step down from my position. I am confident that Corby is in capable hands, and I have full faith in the leadership team to steer us toward an even more prosperous future," said
The Board of Directors has initiated a search to identify and appoint a new Chair.
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
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 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-months period ended
Adjusted Earnings from Operations is equal to earnings from operations before interest and taxes for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments.
Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments, net of tax calculated using the effective tax rate. Adjusted net earnings per share and adjusted diluted net earnings per share are computed in the same way as basic net earnings per share and diluted net earnings per share, respectively.
Please refer to the "Non-GAAP Financial Measures" section of our MD&A for the three-month period ended
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
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