Corby Spirit and Wine Limited reports its fiscal 2024 third quarter results for the period ended March 31, 2024 and announces dividend of $0.21 per share

TORONTO, May 9, 2024 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B), a leading Canadian manufacturer, marketer and distributor of spirits, wines and ready-to-drink beverages ("RTDs"), today announced its fiscal 2024 third quarter financial results for the three-month period ended March 31, 2024 ("Q3") and the nine-month period ended March 31, 2024 ("FYTD March").

Q3 Revenue +50% year-over-year and FYTD March Revenue +37% year-over-year

Adjusted Earnings from Operations +91% year-over-year in Q3 and +33% year-over-year in FYTD March (Reported Earnings from Operations +91% in Q3 and +21% in FYTD March)

Quarterly Dividend declared of $0.21 per share

FINANCIAL RESULTS

The third quarter of the fiscal year reflected Revenue growing +50% compared to the same period last year, driven by:

• Strong Domestic Case Good performance (sales +9% excluding the contribution from Ace Beverage Group Inc. (ABG)) with particularly positive value conversion, enhanced by the contribution of the ABG brands (Total Domestic sales +54% including ABG);
• International markets' sales +82%, driven by continued sales through new market opportunities;
• Commissions +29% from the dynamic performance of key strategic imported brands.

Adjusted Earnings from Operations¹ and Reported Earnings from Operations in the third quarter each grew +91% versus the same period last year. This growth reflects Revenue growth, including the contribution of the ABG brands, and diligent cost management with a focus on purposeful resource investment. This strong growth was achieved despite the addition of ABG marketing activities and overheads.

Benefitting from a strong Q3, Revenue for FYTD March was +37% compared to the same period last year, driven by:

• Solid Domestic Case Good sales excluding ABG +2%, despite a general slowdown in the Spirits market and stock level normalization at liquor boards. With the inclusion of the ABG brands, Domestic sales grew +45%;
• International markets' sales +44%, driven by shipments through new market opportunities and a rebound in Lamb's performance in the UK;
•  Resilient commissions on par with last year, despite a strong comparable in the prior year.

In FYTD March, marketing, sales and administrative expenses grew +20% when compared to the same period last fiscal year, reflecting new marketing activities and overheads related to ABG brands, combined with strategic investments behind key brands. As a result, adjusted Earnings from Operations¹ in FYTD March grew +33% (+21% Reported) versus the same period last year.

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

"I am proud of our portfolio's exceptional performance, which has been consistently outpacing the value growth of the overall Spirits and RTD market for six consecutive quarters. This achievement shows the effectiveness of our portfolio and sales execution strategy, which is focused on amplifying growth across our brands, while catering to diverse price points. Our commitment to execution excellence is yielding tangible results, evident in our robust financial performance this quarter and year-to-date.

Furthermore, I am excited by the journey of Corby and ABG towards leadership in Canada's dynamic RTD category. Our concerted efforts to bolster market share in Western Canada through the pending acquisition of Nude RTD is a strategic decision that underscores our commitment to sustained growth and market leadership. We expect to close this transaction early in the fourth quarter and look forward to executing on the exciting opportunities ahead."

For further details on financial results for Q3 and FYTD March, please refer to Corby's Management's Discussion and Analysis and consolidated financial statements and accompanying notes for the three-and-nine month periods ended March 31, 2024, prepared in accordance with International Financial Reporting Standards.

MARKET TRENDS

The Total Beverage alcohol market (excluding Beer and Cider) was largely flat over the last nine months:

• Channel performance normalized with On-Premise sales now ahead of pre-pandemic levels;
• Spirits sales have seen a slight decline, but the RTD (Ready-To-Drink) category has exhibited solid mid-single digit growth;
• Value performance continues to outpace volume across all categories.

In the last three months, the market has shown early signs of positive momentum and we are cautiously optimistic on the outlook for the balance of calendar 2024.

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, consistent with the amount of last dividend payment. This dividend is payable on June 12, 2024 to shareholders of record as at the close of business on May 29, 2024.

QUARTERLY CONFERENCE CALL

Corby management will host a conference call on Monday, May 13, 2024, at 5:00 p.m. (EST) to review and discuss the financial and operational results for the period. Corby welcomes stakeholders, investors, and other individual followers to access the conference call by dialing 416-764-8659 or toll free 1-888-664-6392 before the start of the call, or by joining via webcast at https://app.webinar.net/M7gNyBwE9Xl. Following the conclusion of the call, a playback of the conference call will be available for 30 days by calling 416-764-8677 or 1-888-390-0541 and entering passcode 994729#.

1) NON-IFRS FINANCIAL MEASURES & RATIOS

Non-IFRS financial measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

Management believes the non-IFRS 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 IFRS 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 Adjusted Earnings from Operations and Adjusted Net Earnings to their most directly comparable financial measures for the three-and-nine month periods ended March 31, 2024, and 2023:

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, costs and termination fees related to distributor transitions and restructuring provisions.

Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments, costs and termination fees related to distributor transitions, restructuring provisions, and interest charges related to NCI obligation, net of tax calculated using the effective tax rate.

Adjusted Basic Net Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.

Adjusted Diluted Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.

Please refer to the "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios" section of our MD&A for the three-and-nine month periods ended March 31, 2024 as filed on SEDAR+ for further information regarding Non-IFRS 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 period ended March 31, 2024 as well as Corby's other public filings, available at www.sedarplus.ca 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, and ready-to-drink beverages. 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, Cottage Springs® ready-to-drink beverages 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, Olmeca Altos^® and Código 1530^® tequilas, Jefferson'stm and Rabbit Hole^® bourbons, 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.

www.Corby.ca

SOURCE Corby Spirit and Wine Limited