Corby Spirit and Wine Limited reports strong Q4 and full-year fiscal 2025 results, and announces dividend of $0.23 per share.

Cision Canada

a day ago

TORONTO, Aug. 20, 2025 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B), a leading Canadian manufacturer, marketer and importer of spirits, wines and ready-to-drink cocktails ("RTDs"), today announced its financial results for the fiscal fourth quarter ("Q4") and full-year 2025 ("FY25") periods ended June 30, 2025.
Strong Q4 performance reflecting sales execution excellence across our portfolio and continued RTD business expansion, leading to robust full year FY25 results through sustained share gains in an evolving market
Q4 Revenue of $72.0 million (+8% reported year-over-year, +6% organic)
FY25 Revenue of $246.8 million (+7% reported, +2% organic)
Q4 Adjusted EBITDA 1 of $15.6 million (+18%)
FY25 Adjusted EBITDA 1 of $64.0 million (+7%)
Q4 Adjusted Net Earnings 1 of $7.5 million (+37%) (Reported +30%)
FY25 Adjusted Net Earnings 1 of $30.6 million (+7%) (Reported +15%)
Solid Balance Sheet and strong Cash Flow generation in FY25
Quarterly Dividend declared of $0.23 per share
FINANCIAL RESULTS
Q4 FY25 results: Revenue for the fourth quarter of fiscal 2025 was $72.0 million, increasing by $5.5 million or 8% compared to the same period last year, with owned and represented spirits benefiting from strong shelf prominence as a result of sales execution excellence, provincial trade measures, and the full-period inclusion of the Nude brands acquired in May 2024. Organic revenue 1, which excludes the impact of the acquisitions and dispositions completed in the last twelve months, was $70.6 million during the quarter, reflecting strong growth of $4.1 million or 6% compared to the prior year period. Marketing, sales and administrative expenses decreased $0.4 million, or 2% year-over-year to $23.7 million, reflecting continued diligence in overhead management and realized organizational efficiency.
The robust revenue growth and Corby's diligent cost management supported Adjusted EBITDA 1 increasing by 18% year-over-year to $15.6 million. In addition, Adjusted Net Earnings 1 for Q4 FY25 of $7.5 million reflected a substantial improvement of 37% year-over-year, while reported Net Earnings 1 increased by 30% to $6.2 million.
Full-year FY25 results: Revenue for fiscal 2025 was $246.8 million, increasing by $17.1 million or 7% compared to fiscal 2024, reflecting the full-year contribution of the Nude Brands and steady organic revenue growth. Organic revenue 1 reached $233.5 million, with growth of 2% versus the prior year, demonstrating resilience and strength while navigating a volatile market:
Domestic case goods revenue of $184.1 million, increasing by 1% in a softer spirits market, with Corby leveraging its fast-growing RTD portfolio to capitalize on the retail modernization opportunity in Ontario; offsetting the adverse impacts of labour strikes at the LCBO, ports, and railways during the first half of fiscal 2025;
Commissions sales reached $30.6 million, reflecting growth of 15%, led by imported RTDs and wines capitalizing on the route-to-market ("RTM") modernization in Ontario; and
Export revenue of $14.9 million, a decline of 12% year-over-year, lapping the pipeline fill to new markets last year combined with an unfavourable phasing of shipments to the US.
Marketing, sales and administrative expenses increased by $1.8 million, or 2% to $77.0 million in FY25, primarily reflecting the full-year effect of marketing investments and overheads related to the acquisition of Nude brands. Domestic investments lapped sponsorship and media campaign events from last year, while Corby invested further to support strategic brands including J.P. Wiser's through a new NHL multi-year partnership and Polar Ice vodka to sustain its strong commercial momentum. An ongoing focus on operational efficiency led to overall expenses increasing at a slower rate than revenue.
Adjusted EBITDA 1 totaled $64.0 million in FY25, increasing by 7% versus the same period last year. Corby delivered reported net earnings of $27.4 million and Adjusted Net Earnings 1 of $30.6 million in FY25, increasing by 15% and 7% year-over-year, respectively.
The Company generated strong cash flow during FY25, with Cash Flow from Operating Activities of $44.8 million, an increase of $13.3 million or 42% year-over-year. Corby closed FY25 with a healthy balance sheet and its Net Debt / Adjusted EBITDA 1 ratio at 1.4x at fiscal year-end. Corby delivered a dividend payout ratio 1 of 57% for the full year, highlighting the sustainability of the Company's quarterly dividend and sound financial policy.
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"I am incredibly proud of Corby's business performance for the fourth quarter leading to a record-high revenue in full year of fiscal 2025, with value shares gains in the Canadian spirits market for the third year in a row. In a volatile market environment, the strong performance highlights the effectiveness of our portfolio prioritization strategy, and Corby's continued excellence in sales execution. Our recent acquisitions in the RTD segment have yielded strong results and have supported our ability to grow rapidly to align with evolving consumer preferences and newly opened retail channels. This translated into strong financial results throughout the year, including growth in revenue and profitability as well as robust cash flow generation.
Looking ahead, I'm confident in our ability to sustain commercial momentum in a shifting market by leveraging our core strengths and portfolio breadth. Our focus remains on outperforming the wider Spirits and RTD categories in fiscal 2026. This will be achieved through disciplined execution of strategic priorities across our spirits brands, continuing the strong momentum of our RTD portfolio, and leveraging digital tools to aid in optimizing return on investment on advertising and promotion, pricing strategy, and sales execution.
Concurrently, we will continue to maintain a balanced capital allocation strategy, capitalizing on strategic growth opportunities while maintaining financial flexibility and returning capital to our shareholders through our attractive quarterly distribution. I am confident that we have the teams and capabilities to continue proactively navigating challenges and capitalizing on emerging opportunities and we look forward to building on our strong track-record of performance to drive additional long-term shareholder value."
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, 2025, prepared in accordance with International Financial Reporting Standards, available on www.sedarplus.ca and www.corby.ca/investors.
In Q4 FY25, Corby delivered standout performance in a market that continued to face headwinds. While the overall spirits category declined 5% in value relative to the comparable period last year, Corby's over-the-counter spirits sales grew 4%, driven by strong sales execution across both owned and represented brands to increase presence on shelf following the removal of US-origin spirits in key provinces. Meanwhile, Corby RTDs surged 22% in Q4 FY25 compared to the prior year period, outperforming the overall RTD category, which grew 9% in value, in a landscape shaped by shifting consumer preferences and expanding RTD distribution points in Ontario.
In the full-year FY25, the overall spirits market also declined 5% in value, notably impacted by the LCBO labour strike in July 2024 and reduced purchasing patterns observed as a result of the new channel expansion in Ontario. The RTD category was also impacted by the strike during the first fiscal quarter but benefited from the subsequent RTM modernization in Ontario and remained the fastest growing category overall in the last twelve months, increasing by 7% in value.
In that context, Corby's total represented spirits (including PR spirits) have outperformed the Canadian spirits market in value for three fiscal years in a row. In the full-year FY25, Corby spirits demonstrated resilience, declining by only 2% year-over-year, and Corby RTDs (excl. Nude) were dynamic, increasing 10% year-over-year, both outpacing the market in value growth. This outperformance reflects Corby's ability to successfully navigate the LCBO labour strike in July 2024 and Ontario retail modernization changes thanks to a diversified product portfolio and local brand strength, along with successful new product launches.
On July 17, 2024, Pernod Ricard announced the sale of its international strategic wine brands to Australian Wine Holdco Limited, which closed effective April 30, 2025. The transaction includes the sale of a wide portfolio of international wine brands owned and produced by Pernod Ricard Winemakers from three origins including Jacob's Creek ® from Australia; Stoneleigh ®, Brancott Estate ® from New Zealand; and Campo Viejo ® from Spain. As a result of this transaction, Corby has continued to represent these brands in Canada during a transition period ending August 31, 2025 under the same terms as those contained in the Pernod Ricard Representation agreement. During fiscal 2025, these wine brands collectively represented 2% of Corby's revenue.
Discussions with the new owner to continue the representation and distribution of the acquired wine brands in Canada beyond the end of the transition period are progressing positively.
QUARTERLY DIVIDEND
The Corby Board of Directors is pleased to declare a dividend of $0.23 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company, consistent with the amount of the last dividend payment. This dividend is payable on September 26, 2025 to shareholders of record as at the close of business on September 10, 2025.
QUARTERLY CONFERENCE CALL
Corby management will host a conference call on Thursday, August 21, 2025, at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q4 and FY25 periods. 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 Corby FY25 Year End Earnings Call. 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 474210 #. A replay of the webcast will also be posted on Corby's website under the "Investors" section at www.corby.ca/investors.
1) NON-IFRS FINANCIAL MEASURES & RATIOS
In addition to using financial measures prescribed under IFRS, references are made in this news release to "Adjusted Earnings from Operations", "Adjusted Net Earnings", "Adjusted Basic Earnings per Share", "Adjusted Diluted Earnings per Share", "Total Debt", "Net Debt", "Organic Revenue" and "Adjusted EBITDA" which are non-IFRS financial measures. 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 included in this news release 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.
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, restructuring provisions and portfolio rationalization costs; and in FY24, adjusted to remove the costs incurred for business combination inventory fair value adjustments, one-time termination fees related to distributor transitions, restructuring provisions and the transaction costs related to the acquisition of ABG and Nude assets.
Adjusted EBITDA refers to Adjusted Earnings from Operations adjusted to remove amortization and depreciation disclosed in Corby's financial statements.
Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments, restructuring provisions, portfolio rationalization costs and the notional interest charges related to NCI obligation, net of tax calculated using the effective tax rate; and in FY24, adjusted to remove the costs incurred for business combination inventory fair value adjustments, one-time termination fees related to distributor transitions, restructuring provisions, the transaction costs related to the acquisition of ABG and Nude assets and the notional 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.
The following table presents a reconciliation of Adjusted Earnings from Operations, Adjusted EBITDA and Adjusted Net Earnings to their most directly comparable financial measures for the three-months and year ended June 30, 2025, and 2024:
Three months ended
Year ended
June 30,
June 30,
June 30,
June 30,
(in millions of Canadian dollars)
2025
2024
$ Change
% Change
2025
2024
$ Change
% Change
Earnings from operations
$ 10.4
8.7
$ 1.7
20 %
$ 46.1
40.7
$ 5.4
13 %
Adjustments:
Transaction related costs 1
-
0.6
(0.6)
(100 %)
-
1.2
(1.2)
(100 %)
Portfolio rationalization costs 2
0.8
-
0.8
n.a.
0.8
-
0.8
n.a.
Restructuring costs 3
0.3
(0.3)
0.5
(197 %)
0.3
(0.3)
0.5
(197 %)
Fair value adjustment to inventory 4
-
0.2
(0.2)
(100 %)
0.6
3.2
(2.6)
(81 %)
Distributor transition 5
-
-
-
n.a.
-
(0.3)
0.3
(100 %)
Adjusted Earnings from operations
$ 11.5
9.2
$ 2.3
25 %
$ 47.8
44.6
$ 3.2
7 %
Adjusted for Depreciation and amortization
4.1
4.1
0.0
1 %
16.3
15.4
0.8
5 %
Adjusted EBITDA
$ 15.6
13.3
$ 2.3
18 %
$ 64.0
60.0
$ 4.0
7 %
Net earnings
$ 6.2
$ 4.8
$ 1.4
30 %
$ 27.4
23.9
$ 3.5
15 %
Adjustments:
Transaction related costs 1
-
0.3
(0.3)
(100 %)
-
0.9
(0.9)
(100 %)
Portfolio rationalization costs 2
0.6
-
0.6
n.a.
0.6
-
0.6
n.a.
Restructuring costs 3
0.2
(0.3)
0.4
(171 %)
0.2
(0.3)
0.4
(171 %)
Fair value adjustment to inventory 4
-
0.1
(0.1)
(100 %)
0.4
2.4
(1.9)
(81 %)
Distributor transition 5
-
-
-
n.a.
-
(0.2)
0.2
(100 %)
NCI Obligation 6
0.5
0.5
0.1
12 %
2.0
1.8
0.2
12 %
Adjusted Net earnings
$ 7.5
$ 5.4
$ 2.0
37 %
$ 30.6
28.5
$ 2.1
7 %
Three months ended
Year ended
June 30,
June 30,
June 30,
June 30,
(in Canadian dollars)
2025
2024
$ Change
% Change
2025
2024
$ Change
% Change
Per common share
- Basic net earnings
$ 0.22
0.17
$ 0.05
30 %
$ 0.96
0.84
$ 0.12
15 %
- Diluted net earnings
$ 0.22
0.17
$ 0.05
30 %
$ 0.96
0.84
$ 0.12
15 %
Basic net earnings per share
$ 0.22
0.17
$ 0.05
30 %
$ 0.96
0.84
$ 0.12
15 %
Adjustments:
Transaction related costs 1
-
0.01
(0.01)
(100 %)
-
0.03
(0.03)
(100 %)
Portfolio rationalization costs 2
0.02
-
0.02
n.a.
0.02
-
0.02
n.a.
Restructuring costs 3
0.01
(0.01)
0.02
(171 %)
0.01
(0.01)
0.02
(171 %)
Fair value adjustment to inventory 4
-
0.00
(0.00)
(100 %)
0.02
0.08
(0.07)
(81 %)
Distributor transition 5
-
-
-
n.a.
-
(0.01)
0.01
(100 %)
NCI Obligation 6
0.02
0.02
0.00
12 %
0.07
0.06
0.01
12 %
Adjusted Basic, net earnings per share
$ 0.26
0.19
$ 0.07
37 %
$ 1.08
1.00
$ 0.07
7 %
Dilluted net earnings per share
$ 0.22
0.17
$ 0.05
30 %
$ 0.96
0.84
$ 0.12
15 %
Adjustments:
Transaction related costs 1
-
0.01
(0.01)
(100 %)
-
0.03
(0.03)
(100 %)
Portfolio rationalization costs 2
0.02
-
0.02
n.a.
0.02
-
0.02
n.a.
Restructuring costs 3
0.01
(0.01)
0.02
(171 %)
0.01
(0.01)
0.02
(171 %)
Fair value adjustment to inventory 4
-
0.00
(0.00)
(100 %)
0.02
0.08
(0.07)
(81 %)
Distributor transition 5
-
-
-
n.a.
-
(0.01)
0.01
(100 %)
NCI Obligation 6
0.02
0.02
0.00
12 %
0.07
0.06
0.01
12 %
Adjusted Diluted, net earnings per share
$ 0.26
0.19
$ 0.07
37 %
$ 1.08
$ 1.00
$ 0.07
7 %
Organic revenue growth is measured as the difference between revenue excluding case goods revenue from acquired or disposed brands compared to revenue in the preceding fiscal period during which the acquisition or disposal had not yet occurred. For fiscal year 2025, organic revenue excludes revenue from Nude Beverages from July 2024 to April 2025 since the comparative period did not have revenues prior to the acquisition in May 2024.
The following table presents a reconciliation of total organic revenue and organic case goods revenue to their most directly comparable financial measures for the three-months and year ended June 30, 2025, and 2024:
Year ended
Jun 30,
June 30,
Organic Growth
(in millions of Canadian dollars)
2025
2024
Revenue Streams:
Consolidated
Adjusted for revenue
from acquired or
disposed entities
Organic
Consolidated
$ Change
% Change
Domestic case goods revenue
$ 197.3
(13.3)
$ 184.1
$ 181.8
$ 2.3
1 %
Export case goods revenue
14.9
-
14.9
17.0
(2.0)
(12 %)
Total commissions
30.6
-
30.6
26.6
4.0
15 %
Other services
3.9
-
3.9
4.3
(0.4)
(9 %)
Total Revenue
$ 246.8
(13.3)
$ 233.5
$ 229.7
$ 3.9
2 %
Total Debt refers to debt of the Company, which includes bank indebtedness and credit facilities payable, lease liabilities and long-term debt.
Net Debt refers to the cash and deposits in cash management pools of the Company, less bank indebtedness and credit facilities payable and long-term debt.
The following table presents a reconciliation of total debt and net debt to their most directly comparable financial measures as at June 30, 2025 and 2024:
June 30,
June 30,
(in millions of Canadian dollars)
2025
2024
Bank indebtedness
$ (3.5)
$ -
Credit facilities payable
(1.5)
(17.8)
Lease liabilities
(3.6)
(3.0)
Long-term debt
(102.0)
(120.0)
Total debt
$ (110.6)
$ (140.8)
Cash
$ 0.2
$ 4.6
Deposits in cash management pools
$ 15.8
$ 27.4
Bank indebtedness
(3.5)
-
Credit facilities payable
(1.5)
(17.8)
Long-term debt
(102.0)
(120.0)
Net debt
$ (91.0)
$ (105.8)
Dividend Payout Ratio refers to annualized dividends paid divided by Cash Flow from Operating Activities.
Please refer to the "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios" section of our MD&A for the three-months and year ended June 30, 2025 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-twelve month period ended June 30, 2025 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, 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 ® and Nude ® 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's™ 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.