Corby Spirit and Wine (CSW-A) Q2 2025 earnings summary

Executive summary

• Achieved strong H1 FY25 results with double-digit reported revenue growth and resilient earnings, driven by RTD expansion, core brand strength, new channel expansion, and strategic acquisitions of ABG and Nude.

• Outperformed the Canadian spirits market for over two years, gaining share across most categories and maintaining momentum despite industry headwinds.

• Strategic focus on portfolio innovation, operational excellence, and disciplined cost management supported profitability and cash flow.

• Maintained robust cash flow and a solid balance sheet, with Net Debt to Adjusted EBITDA ratio at 1.3.

• Increased quarterly dividend to CAD 0.23 per share, a 5% rise, with two increases in FY25 reflecting confidence in outlook and earnings growth.

Financial highlights

• Q2 FY25 revenue reached CAD 61.7 million, up 10% year-over-year, with organic revenue up 5%.

• H1 FY25 revenue totaled CAD 126.8 million, up 11% year-over-year; organic revenue grew 4%.

• Adjusted EBITDA for Q2 was CAD 17.2 million, up 10%; H1 Adjusted EBITDA was CAD 36.7 million, up 9%.

• Adjusted net earnings per share were CAD 0.30 in Q2 (up 8%) and CAD 0.66 in H1 (up 8%); reported EPS for H1 was CAD 0.60 (up 16%).

• Cash from operating activities in H1 was CAD 35.6 million, a CAD 14.4 million improvement year-over-year.

Outlook and guidance

• Focus remains on sustainable growth, innovation, and efficiency, with innovation targeted to contribute one-third of annual revenue growth.

• Anticipates continued resilience in H2 FY25, with further market share gains despite a forecasted low single-digit decline in the spirits market.

• Ongoing monitoring of regulatory and trade changes, including U.S.-Canada tariffs.

• Well-positioned to leverage RTD portfolio synergies and Ontario route-to-market modernization.

• Focus on revenue growth management and cost discipline to protect margins and deliver sustainable growth.