Corby Spirit and Wine (CSW-A) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue reached CAD 65.1 million, up 11% year-over-year, driven by acquisitions in the RTD segment, especially Nude, and resilient organic growth of 3%, despite industry headwinds and the LCBO strike.

• Adjusted earnings from operations rose 9% to CAD 15.6 million; reported earnings from operations increased 31%.

• Adjusted net earnings were CAD 10.2 million (+7%), while reported net earnings were CAD 9.3 million (+24%) compared to the same quarter last year.

• Outperformed the overall Canadian spirits market in value growth, with portfolio value growth of +0.4% versus a market decline of -1.1% to -1.5% over the last 12 months.

• Declared a quarterly dividend of CAD 0.22 per share, representing a 6.7% yield and consistent with the previous payment.

Financial highlights

• Q1 revenue reached CAD 65.1 million, up 11% year-over-year, including CAD 4.9 million from the Nude acquisition.

• Adjusted net earnings per share increased 7% to CAD 0.36, with basic and diluted EPS at CAD 0.33, up 24% year-over-year.

• Cash flow from operating activities improved to CAD 3.7 million, up CAD 8.5 million from the prior year.

• Domestic case goods revenue up 13% (2% organic), offsetting a 16% decline in international case goods.

• Total commission income up 17%, benefiting from pre-ordering and cycling of liquor board stocking patterns.

Outlook and guidance

• Focus remains on sustainable growth, innovation, and efficiency, aiming to outpace the spirits market and protect profitability.

• Innovation expected to contribute about one-third of annual revenue growth.

• Continued emphasis on RTD expansion, targeted price increases, and digital transformation to protect margins.

• Revenue normalization expected as pre-ordering and destocking effects subside through the fiscal year.

• Well-positioned to gain market share despite a slightly declining spirits market.