Corby Spirit and Wine (CSW-A) Q4 2024 earnings summary

Executive summary

• Achieved strong revenue and earnings growth in FY24, driven by acquisitions of ABG and Nude, robust portfolio performance, and portfolio prioritization strategy.

• Outperformed the Canadian beverage and spirits market in value growth for the second consecutive year, gaining share in all categories.

• Maintained solid cash flow generation and a robust balance sheet, supporting increased dividends and financial flexibility.

• Digital transformation and portfolio prioritization initiatives contributed to commercial success.

Financial highlights

• FY24 revenue grew 41% to $229.7M, breaking the $200M milestone, with Q4 revenue up 50% to $66.5M, mainly from ABG and Nude acquisitions.

• Organic revenue for FY24 grew 4%, but Q4 organic revenue declined 1% due to a pricing dispute.

• Adjusted earnings from operations in FY24 were $44.6M, up 37%; Q4 adjusted earnings from operations were $9.2M, up 56%.

• Adjusted net earnings for FY24 were $28.5M, up 13%; adjusted EPS reached $1.00.

• Cash flow from operating activities for FY24 was $31.5M.

Outlook and guidance

• Focus remains on market share gains, scaling RTD brands, leveraging digital tools for margin protection, and unlocking synergies from ABG and Nude acquisitions.

• Plans to expand Cottage Springs outside Ontario, target growth in tequila and export markets, and capitalize on Ontario's route to market modernization.

• Continued disciplined investment, revenue growth management, and potential for further dividend increases, subject to board approval.