TORONTO, Aug. 24,
2022 /CNW/ - Corby Spirit and Wine Limited ("Corby"
or the "Company") (TSX: CSW.A) (TSX: CSW.B) today announced
financial results for its fiscal 2022 fourth quarter and year ended
June 30, 2022.
Quarterly Dividend declared of $0.24 per share, up 14% vs last
year.
Continued solid Q4 performance with Adjusted
Revenue +4% vs last year (Reported Revenue +2%).
Full
year FY22 Adjusted Revenue growth +2% vs last year (Reported
Revenue flat).
QUARTERLY DIVIDEND.A-B
The Corby Board of Directors is pleased to declare a dividend
of $0.24 per Voting Class A
Common Share and Non-Voting Class B Common Share of the Company, in
line with our dividend policy. This dividend is payable on
September 30, 2022 to
shareholders of record as at the close of business on September 16, 2022.
CONSUMER TREND
Consumer demand increased on a full year basis,
mostly driven by a strong recovery of the on-premise
channel and International markets growth, while the retail
channel remained flat cycling strong performance at liquor boards
last year. Q4 confirmed that positive trend driven by the
on-premise channel.
FINANCIAL RESULTS
Adjusted Revenue for the fourth quarter was
up 4% compared to the same period last year, leading to
full year growth of +2% compared to the same period
last year. Hampered by supply chain challenges especially
over the second quarter and cycling the one-off sale of aged bulk
last year (Reported Revenue +2% in Q4, flat in full year) we
achieved:
- Solid domestic performance +2% in full year;
- Robust gross commissions performance +4% in full year
excluding the impact of accelerated amortization of representation
rights (Reported commissions revenue net of amortization down 7%);
and
- Growing international market performance
+3% in full year.
Marketing, sales and administrative expenses were
up 8% for the full fiscal year, cycling a low-cost
base during the pandemic last year, and returning to FY19
pre-pandemic levels (+1% 3-year CAGR).
As a result, Adjusted Net Earnings decreased by 8% for
the full fiscal year 2022 compared to last year (Reported
Net Earnings -24% in full year FY22). However, those
results are showing solid growth versus FY19
pre-pandemic levels by +3% CAGR (Reported Net
Earnings -3% CAGR).
Nicolas Krantz, Corby's
CEO, stated,
"Despite the challenging global environment with high
inflation and continued supply chain issues, Corby delivered
another robust quarter leading to a full-year Adjusted Operating
Revenue of +2% resulting in consistent growth over the last 3 years
(+3% CAGR).
This gives us confidence to bring back our advertising and
promotional investment to pre-pandemic levels to fuel momentum on
our strategic brands and invest in our organization to sustain
future growth.
We continue to pursue our strategy to connect consumers to
our brands, win market share in key categories and build strong
relationships with our partners, while our digital transformation
is on track to build competitive advantage in the
mid-term."
For further details, please refer to Corby's Management's
Discussion and Analysis and consolidated financial statements and
accompanying notes for the three-months and year ended June 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.
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-months
and year ended June 30, 2022, and
2021:
|
Three months
ended
|
|
Twelve months
ended
|
|
June
30,
|
June 30,
|
|
|
|
June
30,
|
June 30,
|
|
|
(in millions of
Canadian dollars, except per share amounts)
|
2022
|
2021
|
$
Change
|
%
Change
|
|
2022
|
2021
|
$
Change
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
41.2
|
$
40.4
|
$
0.8
|
2 %
|
|
$
159.4
|
$
159.8
|
$
(0.4)
|
0 %
|
Adjusted for
amortization of PR Representation rights
|
2.6
|
1.8
|
0.8
|
44 %
|
|
10.4
|
7.2
|
3.2
|
44 %
|
Adjusted
Revenue(1)
|
43.8
|
42.2
|
1.6
|
4 %
|
|
169.8
|
167.0
|
2.8
|
2 %
|
|
|
|
|
|
|
|
|
|
|
Earnings from
Operations
|
5.0
|
7.7
|
(2.7)
|
(35 %)
|
|
32.7
|
41.5
|
(8.8)
|
(21 %)
|
Adjusted for
amortization of PR Representation rights
|
2.6
|
1.8
|
0.8
|
44 %
|
|
10.4
|
7.2
|
3.2
|
44 %
|
Adjusted for impairment
charge
|
2.1
|
-
|
2.1
|
100 %
|
|
2.1
|
-
|
2.1
|
100 %
|
Adjusted Earnings
from Operations(1)
|
9.7
|
9.5
|
0.2
|
2 %
|
|
45.2
|
48.7
|
(3.5)
|
(7 %)
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
3.1
|
5.7
|
(2.6)
|
(45 %)
|
|
23.4
|
30.6
|
(7.2)
|
(24 %)
|
Adjusted for
amortization of PR Representation rights, net of tax
impact
|
2.0
|
1.4
|
0.6
|
42 %
|
|
7.6
|
5.3
|
2.3
|
43 %
|
Adjusted for impairment
charge
|
2.1
|
-
|
2.1
|
100 %
|
|
2.1
|
-
|
2.1
|
100 %
|
Adjusted Net
Earnings(1)
|
7.2
|
7.1
|
0.1
|
1 %
|
|
33.1
|
35.9
|
(2.8)
|
(8 %)
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
0.11
|
$
0.20
|
$
(0.09)
|
(45 %)
|
|
$
0.82
|
$
1.07
|
$
(0.25)
|
(24 %)
|
Adjusted for
amortization of PR Representation rights, net of tax impact
|
0.07
|
0.05
|
0.02
|
42 %
|
|
0.27
|
0.19
|
0.08
|
43 %
|
Adjusted for impairment
charge
|
0.07
|
-
|
0.07
|
100 %
|
|
0.07
|
-
|
0.07
|
100 %
|
Adjusted Basic, net
earnings per share(1)
|
0.25
|
0.25
|
0.00
|
1 %
|
|
1.16
|
1.26
|
(0.10)
|
(8 %)
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
0.11
|
0.20
|
(0.09)
|
(45 %)
|
|
0.82
|
1.07
|
(0.25)
|
(24 %)
|
Adjusted for
amortization of PR Representation rights, net of tax
impact
|
0.07
|
0.05
|
0.02
|
42 %
|
|
0.27
|
0.19
|
0.08
|
43 %
|
Adjusted for impairment
charge
|
0.07
|
-
|
0.07
|
100 %
|
|
0.07
|
-
|
0.07
|
100 %
|
Adjusted Diluted,
net earnings per share(1)
|
0.25
|
0.25
|
0.00
|
1 %
|
|
1.16
|
1.26
|
(0.10)
|
(8 %)
|
|
|
|
|
|
|
|
|
|
|
(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 and a non-cash impairment charge related
to the Foreign Affair Winery.
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 an effective tax rate of 26.9% in both the Q4 and YTD periods
(2021 – 25.9% and 26.4%, respectively) and a non-cash impairment
charge related to the Foreign Affair Winery.
Adjusted earnings per share and Adjusted diluted
earnings per share are computed in the same way as basic earnings
per share and diluted earnings per share using Adjusted Net
Earnings as the numerator.
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-months and year ended June 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-months and year ended
June 30, 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