TORONTO, Nov. 12, 2020 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B) today announced financial results for its fiscal 2021 first quarter ended September 30, 2020. The Corby Board of Directors today also declared a dividend of $0.22 per share payable on December 11, 2020 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 November 27, 2020.
Dynamic consumer demand within the off-premise channel has offset the severe interruptions in the on-premise and travel retail channels. Although some brands were negatively impacted by effects of COVID-19 pandemic restrictions, others were boosted by new opportunities in at-home consumption occasions and in ecommerce.
On the back of this resilient environment, some liquor board customers have ordered strongly in the first quarter of fiscal 2021 to build stock ahead of the key second quarter trading period. As a result, the Company saw strong shipments in the quarter ended September 30, 2020, leading to 9% top-line growth for Corby owned brands and commission income growth of 30% compared to the same period last year. Overall, the quarter enjoyed robust revenue growth of 12%.
In a very volatile environment, rigor and caution were applied to advertising and promotion expenses as we continued to invest purposefully behind our key strategic brands and channels. In addition, overhead expenses were strictly controlled. As a result, total marketing, sales and administration expenses decreased significantly by 14% in the three-months ended September 30, 2020.
With strong top-line growth and reduced expenses, the quarter ended September 30, 2020 saw an unusually high net earnings of $10.8 million, an increase of 68% compared to the same period last year.
"We have made a good start to the year in exceptional circumstances and I am pleased with our performance. Demand for spirits and wine remained strong and while we have focused our efforts to support sales in the off-premise channel we also maintained our relationship with our on-premise partners working together during what is a difficult time."
"This strong first quarter result is encouraging as we operate in this challenging and volatile environment. This quarterly performance is not indicative of the expected full year trend as our shipments far exceeded retail depletions and the phasing of our expenses means that our first quarter spend was unusually low. I have confidence in Corby's strategy and the fundamentals of our business to deliver value growth this year," noted Nicolas Krantz, President and Chief Executive Officer of Corby.
"In this time for many of us, making connections, enjoying convivial moments with friends and family and building authentic relationships is more important than ever. With Corby and J.P.Wisers, Canadians can raise a glass to toast their loved ones."
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-months September 30, 2020, prepared in accordance with International Financial Reporting Standards.
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
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