TORONTO, Feb. 11, 2021 /CNW/ - Corby Spirit and Wine
Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B)
today announced financial results for its fiscal 2021 second
quarter ended December 31, 2020.
The Corby Board of Directors today also declared a dividend of
$0.21 per share payable on
March 5, 2021 on the Voting Class A
Common Shares and Non-Voting Class B Common Shares of the Company
to shareholders of record as at the close of business on
February 25, 2021. Despite the
COVID-19 pandemic and an uncertain economic outlook, given the
Company's performance and the strong cash position, the Board of
Directors decided to exercise their discretion to declare a
quarterly dividend aligned to Corby's dividend policy. The policy
provides that, subject to business conditions and opportunities and
appropriate adjustment for extraordinary events, regular dividends
will be paid quarterly, on the basis of an annual amount equal to
the greater of 90% of net earnings per share in the preceding
fiscal year ended June 30, and
$0.60 per share.
Consumer demand has remained resilient through the second
quarter ended December 31, 2020 with
gains in the retail channel continuing to offset the severe
interruptions in the on-premise and travel retail channels. Some
brands continue to be more negatively impacted by effects of
COVID-19 pandemic restrictions, while others were boosted by new
opportunities in at-home consumption occasions and in ecommerce.
Customers ordered strongly in the previous quarter to build stock
ahead of key trading periods to avoid supply chain disruptions in a
volatile pandemic impacted environment.
Following the unusually high shipments in the first quarter that
resulted from liquor boards' stock-building, shipments of both
Corby owned and Pernod Ricard brands softened in the quarter ended
December 31, 2020. As a result, Corby
saw an expected normalization of shipments of owned-brands which
declined 1% in the second quarter, leading to year to date shipment
volume growth of 2%.
While revenue for the second quarter decreased 3%, primarily led
by a decrease in commission income from Pernod Ricard brands, year
to date revenue for the first six months was up 4% for Corby owned
brands, and with commission income growth of 7%, the Company
delivered a solid overall revenue growth of 4%.
In this volatile environment, Corby's advertising and promotion
expenses reflect purposeful and focused investments behind our key
brands and channels, in addition to overhead and discretionary
expenses which were strictly controlled. Total marketing, sales and
administration expenses decreased significantly by 11% in the
three-months ended December 31, 2020
and by 12% in the six-months ended December
31, 2020, reflecting changes in phasing compared to
prior comparable periods, with normalization expected for the
second half of the fiscal year.
As a result, net earnings for the second quarter were at
$7.8 milion, flat to last year. Net
earnings were up 30% to $18.7 million
for the first half of fiscal 2021.
"This fiscal year we have seen significant shifts in consumer
occasions and increased demand for spirits and wines. Our teams
have adapted to ensure that changing consumer needs are met," noted
Nicolas Krantz, President and Chief
Executive Officer of Corby.
"I am pleased with Corby's strong performance in the first half
of the fiscal year in this challenging and volatile environment,
which saw solid revenue growth and high net earnings. We chose to
focus our efforts and our investment on driving excellence in the
most relevant channels and consumer occasions. This has resulted in
some shifts to the profile and timing of our investments, but has
led to depletion results that are competitive in key priority
categories and share gains in our strategic battlegrounds.
In the second half of the fiscal year, we will start cycling the
initial impacts of the COVID-19 pandemic. I have confidence in
Corby's strategy and the fundamentals of our business," continued
Mr. Krantz.
For further details, please refer to Corby's management's
discussion and analysis and interim condensed consolidated
financial statements and accompanying notes for the
three-and-six-months ended December 31,
2020, prepared in accordance with International Financial
Reporting Standards.
About Corby
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.
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. Forward-looking statements are not guarantees
of future performance. They involve risks, uncertainties and
assumptions and, as such, actual results or expectations could
differ materially from those anticipated in these forward-looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. All financial results are reported
in Canadian dollars.
SOURCE Corby Spirit and Wine Limited