Corby Spirit and Wine Limited Reports Q1 Fiscal 2027 Results and Announces Dividend of $0.25 per Share
TORONTO, Nov. 11, 2026 /CNW/ -- Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B), a leading Canadian manufacturer, marketer and importer of spirits, wines and ready-to-drink cocktails ("RTDs"), today announced its financial results for the three-month period ended September 30, 2026 ("Q1").
Solid Q1 performance with continued RTD revenue growth offsetting a soft spirits market
Q1 Organic Revenue1 of $70.1 million (+1% year-over-year) and reported Revenue of $72.5 million (-4% year-over-year)
Strict cost discipline leading to Q1 Adjusted EBITDA1 of $22.2 million (+10%)
Q1 Adjusted Net Earnings1 of $13.0 million (+18%) (Reported +171%)
Quarterly Dividend declared of $0.25 per share
FINANCIAL RESULTS
Organic revenue1, which excludes the contributions in both the current period and the comparable period from disposed brands (i.e., Lamb's, Ace Hill and Liberty Village), was $70.1 million, an increase of $1.0 million or 1%, lapping very strong Q1 revenue growth in the prior year of 16%. Reported revenue for the first quarter of fiscal 2027 was $72.5 million, a decrease of $2.9 million or 4% compared to the same period last year primarily due to the sale of the Lamb's rum brand in the quarter. Organic revenue1 was influenced by:
- Organic domestic case goods revenue1 was $58.8 million, up 3% year-over-year due to continued growth in the RTD brands driven by pricing gains from mark-up changes in Ontario and Alberta. This offset soft domestic spirits performance lapping a strong prior year period that benefitted from the removal of U.S-origin products across various provincial liquor boards.
- Commissions revenue was $9.0 million, a 10% increase year-over-year, reflecting the addition of CDMI commissions and higher agency commissions under the Vinarchy representation agreement which more than offset soft performance in PR brands.
- Organic export revenue1 totaled $1.4 million, a decrease of 44% year-over-year, driven by the transition of U.S distribution and unfavourable order phasing in Sweden and Turkey.
In the first quarter of fiscal 2027, gross margin rate increased 374 bps to 52% benefitting from RTD pricing gains, supply chain efficiencies and higher commission income.
Marketing, sales and administrative expenses were $20.1 million in the first quarter of fiscal 2027, flat compared to the prior year period despite being impacted by one-time restructuring expenses. This reflects lower marketing expenses driven by phasing of media agency fees and overall cost rationalization initiatives, coupled with overhead spending efficiency compared to the prior year. These savings reflect targeted investment behind key brands and careful resource management.
Earnings from Operations totaled $35.9 million in the first quarter of fiscal 2027, representing year-over-year growth of 118% due to the inclusion of the net gain on the sale of Lamb's rum brand of $18.2 million. When eliminating this gain, along with adding back one-time restructuring costs, Adjusted Earnings from Operations1 grew at 15% year-over-year, which reflects the aforementioned gross margin improvement and Corby's cost discipline amid relatively stable revenue.
Adjusted EBITDA1 totaled $22.2 million in the first quarter of fiscal 2027, up 10% year-over-year. Reported Net Earnings of $27.6 million was up 171% year-over-year, while Adjusted Net Earnings1 of $13.0 million was up 18% year-over-year.
The Company continued to generate strong cash flow during the quarter, with Cash Flow from Operating Activities of $7.4 million, an increase of $1.8 million, or 32% year-over-year. Corby's Net Debt / Adjusted EBITDA1 ratio improved to 0.6x at the end of the first quarter of fiscal 2027 (0.8x including upfront payment fee for the Pernod Ricard representation agreement of $18.7 million on October 1, 2026), primarily reflecting proceeds from the sale of Lamb's rum brand. Corby continues to maintain a strong balance sheet providing financial flexibility. Corby recorded a dividend payout ratio1 of 70% over the last four quarters, reflecting its balanced approach to shareholder returns and capital allocation strategy.
Corby's President and Chief Executive Officer, Florence Tresarrieu, stated,
"Fiscal 2027 is off to a solid start, with topline continuing to benefit from the diversity of our portfolio as growth in RTD brands offsets softness in spirits performance. We expect the spirits market to remain uncertain and volatile for the foreseeable future, especially given the potential for U.S. products to return to shelves. We remain disciplined in managing our cost base while continuing to invest behind our strategic priorities, with a focus on delivering profitable growth, maintaining a strong balance sheet and supporting a sustainable dividend for shareholders."
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-month period ended September 30, 2026, prepared in accordance with International Financial Reporting Standards, available on www.sedarplus.ca and www.corby.ca/investors.
MARKET TRENDS2
In the three months ended August 31, 2026, Corby operated in an evolving beverage alcohol environment characterized by ongoing moderation trends and heightened value-seeking behaviour. The overall spirits category declined -3.7% in value year-over-year, while Corby's total spirit brands declined -6.0% in retail value, cycling an elevated baseline comparative from consumer-driven stock-up post the US product ban implementation, coupled with enhanced competitive pressure in vodka and Canadian whisky categories and a shifting pricing landscape. In parallel, Corby's RTD brands softened, declining -1.3% in volume terms over the same period, while the overall RTD industry contracted -2.3%, largely reflecting the normalization of benefits from Ontario's Grocery and Convenience channel expansion over the last two fiscal years.
On a rolling twelve-month basis ended August 31, 2026, the overall spirits industry declined -4.5% in value year-over-year, while Corby's total spirit brands declined -2.0% in retail value, with the US product ban and "Proudly Canadian" sentiment boosting portfolio performance. Corby RTD brands grew +7.7% in volume outpacing the total RTD category growing +2.7%. While recent performance reflects a more challenging and competitive operating environment, Corby's brand strength, commercial capability, and disciplined portfolio choices will support continued ability to compete profitably as growth shifts from access expansion to execution-led advantage.
QUARTERLY DIVIDEND
The Corby Board of Directors declared a dividend of $0.25 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company, consistent with the amount of the last dividend payment. This dividend is payable on December 18, 2026 to shareholders of record as at the close of business on November 27, 2026. The Board of Directors assesses the dividend on a quarterly basis. The quarterly dividend was last increased on August 26, 2026, concurrent with the release of Q4 FY26 results.
QUARTERLY CONFERENCE CALL
Corby management will host a conference call on Friday, November 13, 2026, at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q1 period. Corby welcomes stakeholders, investors, and other individual followers to access the conference call by dialing 1-437-900-0527 or toll free 1-888-510-2154 before the start of the call, or by joining via webcast at Corby Spirit and Wine Limited – Q1 FY27 Earnings Call. Following the conclusion of the call, a playback of the conference call will be available for 7 days by calling 289-819-1450 or 1-888-660-6345 and entering passcode 44135 #. A replay of the webcast will also be posted on Corby's website under the "Investors" section at www.corby.ca/investors.
1) NON-IFRS FINANCIAL MEASURES & RATIOS
In addition to using financial measures prescribed under IFRS, references are made in this news release to "Adjusted Earnings from Operations", "Adjusted Net Earnings", "Adjusted Basic Earnings per Share", "Adjusted Diluted Earnings per Share", "Organic Revenue", "Total Debt", "Net Debt", "Adjusted EBITDA" and "Dividend Payout Ratio" which are non-IFRS financial measures or ratios. Non-IFRS financial measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.
Management believes the non-IFRS measures included in this news release are important supplemental measures of operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS financial measures.
Management believes that these measures allow for assessment of the Company's operating performance and financial condition on a basis that is more consistent and comparable between reporting periods.
Adjusted Earnings from Operations is equal to earnings from operations before interest and taxes for the period adjusted to remove net portfolio rationalization costs (or income) and restructuring costs.
Adjusted EBITDA is equal to Adjusted Earnings from Operations adjusted to remove depreciation and amortization disclosed in Corby's financial statements.
Adjusted Net Earnings is equal to net earnings for the period adjusted to remove net portfolio rationalization costs (or income), restructuring costs, the notional interest charges related to the NCI obligation, and fair value adjustments to the NCI obligation.
Adjusted Basic Net Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.
Adjusted Diluted Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.
The following table presents a reconciliation of Adjusted Earnings from Operations, Adjusted EBITDA and Adjusted Net Earnings to their most directly comparable financial measures for the three-month period ended September 30, 2026 and 2025:
Three months ended | ||||||
Sep. 30, | Sep. 30, | |||||
(in millions of Canadian dollars) | 2026 | 2025 | $ Change | % Change | ||
Earnings from operations | $ 35.9 | 16.4 | $ 19.5 | 118 % | ||
Adjustments: | ||||||
Net portfolio rationalization costs (or income)1 | (18.2) | 0.0 | (18.2) | n.a. | ||
Restructuring costs2 | 1.2 | - | 1.2 | n.a. | ||
Adjusted Earnings from operations | $ 18.9 | 16.5 | $ 2.4 | 15 % | ||
Adjusted for Depreciation and amortization | 3.3 | 3.8 | (0.5) | (13 %) | ||
Adjusted EBITDA | $ 22.2 | 20.3 | $ 1.9 | 10 % | ||
Net earnings | $ 27.6 | 10.2 | $ 17.4 | 171 % | ||
Adjustments: | ||||||
Net portfolio rationalization costs (or income)¹ | (15.8) | 0.0 | (15.9) | n.a. | ||
Restructuring costs² | 0.9 | - | 0.9 | n.a. | ||
NCI Obligation³ | 0.3 | 0.3 | 0.0 | 13 % | ||
Fair value adjustment to NCI Obligation⁴ | - | 0.5 | (0.5) | (100 %) | ||
Adjusted Net earnings | $ 13.0 | 11.0 | $ 2.0 | 18 % | ||
Three months ended | ||||||
Sep. 30, | Sep. 30, | |||||
(in Canadian dollars) | 2026 | 2025 | $ Change | % Change | ||
Per common share | ||||||
- Basic net earnings | $ 0.97 | 0.36 | $ 0.61 | 171 % | ||
- Diluted net earnings | $ 0.97 | 0.36 | $ 0.61 | 171 % | ||
Basic net earnings per share | $ 0.97 | 0.36 | $ 0.61 | 171 % | ||
Adjustments: | ||||||
Net portfolio rationalization costs (or income)1 | (0.56) | 0.00 | (0.56) | n.a. | ||
Restructuring costs2 | 0.03 | - | 0.03 | n.a. | ||
NCI Obligation³ | 0.01 | 0.01 | 0.00 | 13 % | ||
Fair value adjustment to NCI Obligation⁴ | - | 0.02 | (0.02) | (100 %) | ||
Adjusted Basic, net earnings per share | $ 0.46 | 0.39 | $ 0.07 | 18 % | ||
Diluted net earnings per share | $ 0.97 | 0.36 | $ 0.61 | 171 % | ||
Adjustments: | ||||||
Net portfolio rationalization costs (or income)1 | (0.56) | 0.00 | (0.56) | n.a. | ||
Restructuring costs2 | 0.03 | - | 0.03 | n.a. | ||
NCI Obligation³ | 0.01 | 0.01 | 0.00 | 13 % | ||
Fair value adjustment to NCI Obligation⁴ | - | 0.02 | (0.02) | (100 %) | ||
Adjusted Diluted, net earnings per share | $ 0.46 | 0.39 | $ 0.07 | 18 % | ||
(1) Net costs (or income) related to rationalizing brand portfolio, including costs (or income) incurred to dispose or discontinue product lines following strategic portfolio review |
The following table presents a reconciliation of Adjusted EBITDA to its most directly comparable financial measures for the three-month period ended September 30, 2026 to the three-month period ended September 30, 2024:
Three Months Ended | |||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | |
(in millions of Canadian dollars) | 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | 2025 | 2024 | 2024 |
Earnings from operations | $ 35.9 | 10.9 | 12.5 | 13.8 | 16.4 | 10.4 | 7.7 | 13.0 | 15.0 |
Adjustments: | |||||||||
Portfolio rationalization costs¹ | - | 0.4 | - | - | - | 0.8 | - | - | - |
Restructuring costs² | 1.2 | 0.5 | - | - | - | 0.3 | - | - | - |
Fair value adjustment to inventory³ | - | - | - | - | - | - | - | - | 0.6 |
Distributor transition | - | - | - | - | - | - | - | - | |
Revised estmate for LCBO pricing dispute⁴ | - | - | (0.9) | - | - | - | - | - | - |
Net portfolio rationalization costs (income)⁵ | (18.2) | - | - | - | - | - | - | - | - |
Adjusted Earnings from operations | $ 18.9 | 11.8 | 11.6 | 13.8 | 16.4 | 11.5 | 7.7 | 13.0 | 15.6 |
Adjusted for depreciation & amortization | 3.3 | 3.0 | 3.6 | 3.5 | 3.8 | 4.1 | 4.1 | 4.1 | 3.9 |
Adjusted EBITDA | $ 22.2 | 14.7 | 15.2 | 17.3 | 20.3 | 15.6 | 11.7 | 17.2 | 19.5 |
(1) Costs related to rationalizing brand portfolio, including costs incurred to discontinue certain recently acquired product lines following strategic portfolio review | |||||||||
(2) (Income) / costs related to organizational restructuring and provisions | |||||||||
(3) Costs related to fair value adjustments to inventory due to business combination | |||||||||
(4) Revised estimate related to the LCBO pricing dispute | |||||||||
(5) Net costs (or income) related to rationalizing brand portfolio, including costs (or income) incurred to dispose or discontinue product lines following strategic portfolio review |
Organic revenue growth is measured as the difference between revenue excluding case goods revenue from acquired or disposed brands compared to revenue in the comparative fiscal period during which the acquisition or disposal had not yet occurred.
The following table presents a reconciliation of total organic revenue and organic case goods revenue to their most directly comparable financial measures for the three-month ended September 30, 2026, and 2025:
Three months ended | |||||||||
Sep. 30 | Sep. 30 | $ Change | % Change | ||||||
(in millions of Canadian dollars) | 2026 | 2025 | |||||||
Case Goods - Domestic Revenue | $ 59.4 | 61.3 | (1.9) | (3 %) | |||||
Adjusted for revenue from acquired or disposed brands | (0.6) | (4.0) | 3.3 | (85 %) | |||||
Case Goods - Domestic Organic Revenue | $ 58.8 | 57.4 | 1.4 | 3 % | |||||
Case Goods - International Revenue | 3.2 | 4.9 | (1.7) | (35 %) | |||||
Adjusted for revenue from acquired or disposed brands | (1.8) | (2.4) | 0.6 | (25 %) | |||||
Case Goods - International Organic Revenue | 1.4 | 2.5 | (1.1) | (44 %) | |||||
Net commissions | 9.0 | 8.2 | 0.8 | 10 % | |||||
Other services | 0.9 | 0.9 | (0.1) | (9 %) | |||||
Total Organic Revenue | $ 70.1 | 69.1 | 1.0 | 1 % | |||||
Total Debt refers to debt of the Company, which includes bank indebtedness and credit facilities payable, lease liabilities and long-term debt.
Net Debt refers to the cash and deposits in cash management pools of the Company, less bank indebtedness and credit facilities payable and long-term debt.
The following table presents a reconciliation of total debt and net debt to their most directly comparable financial measures as at September 30, 2026 and 2025:
Sep. 30, | Sep. 30, | |
(in millions of Canadian dollars) | 2026 | 2025 |
Lease liabilities | $ (8.7) | $ (3.1) |
Long-term debt | (93.0) | (102.0) |
Total debt | $ (101.7) | $ (105.1) |
Cash | $ 2.8 | $ 3.9 |
Deposits in cash management pools | 38.6 | 5.1 |
Long-term debt | (93.0) | (102.0) |
Net debt | $ (51.6) | $ (93.0) |
Dividend Payout Ratio refers to dividends paid during the past twelve-month period ending September 30, 2026, divided by Cash flow from operating activities for the twelve-month period ending September 30, 2026.
The following table presents a reconciliation of the Rolling 12-month Dividend Payout Ratio to the quarterly dividends paid and quarterly cash flow from operating activities:
Twelve months ended | |
Sep. 30, | |
(in millions of Canadian dollars except per share amounts) | 2026 |
Dividend paid per share | $ 0.96 |
Shares outstanding | 28,468,856 |
Total dividends paid | $ 27.3 |
Cash flow from operating activities | 38.9 |
Dividend Payout Ratio | 70 % |
Please refer to the "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios" section of our MD&A for the three-month period ended September 30, 2026 as filed on SEDAR+ for further information regarding Non-IFRS measures.
2) RETAIL SALES DATA SCOPE
Retail sales data is reported to August '26 as September data was not available for Ontario at the time of reporting. Given Ontario's significance within the Canadian spirits & RTD market, excluding Ontario would materially affect the representativeness of national market results. Alberta has been excluded from the retail sales results pending release of August data from the AGLC. The RTD industry performance is quoted in volume terms with reported pricing under review with key Liquor Boards. Corby spirits exclude Lamb's from performance following disposal in Q1 FY27. Furthermore, per LCBO's November 6, 2026 update, Ontario data for weeks 1–20 (April 1st through August 15th) are being republished to address known discrepancies, with completion expected by the end of December 2026. As a result, retail sales data may be subject to change based on this restatement.
FORWARD-LOOKING STATEMENTS
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. These statements are being provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes and are not guarantees of future performance. Although Corby believes that the forward-looking information in this press release is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information. For more information on the risks, uncertainties and assumptions that could cause Corby's actual results to differ from current expectations, refer to the Risks and Risk Management section of our Management's Discussion and Analysis for the three-month period ended September 30, 2026 as well as Corby's other public filings, available at https://www.sedarplus.ca and at https://corby.ca/en/investors/. Corby does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.
About Corby Spirit and Wine Limited
Corby Spirit and Wine Limited is a leading Canadian manufacturer, marketer and distributor of spirits and imported wines, and ready-to-drink beverages. 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, Polar Ice® vodka and McGuinness® liqueurs, as well as the Ungava® gin, Cabot Trail® maple-based liqueurs and Chic Choc® spiced rum, Cottage Springs® and Nude® ready-to-drink beverages and Foreign Affair® wines. Through its affiliation with Pernod Ricard S.A., a global leader in the spirits and wine industry, Corby represents leading international brands such as ABSOLUT® vodka, Chivas Regal®, The Glenlivet® and Ballantine's® Scotch whiskies, Jameson® Irish whiskey, Beefeater® gin, Malibu® rum, Olmeca Altos® and Código 1530® tequilas, Jefferson's™ and Rabbit Hole® bourbons, Kahlúa® liqueur, and Mumm® champagne. Corby also provides representation for certain selected, unrelated third-party brands, such as Vinarchy North America, Inc.'s Jacob's Creek®, Wyndham Estate®, Stoneleigh®, and Campo Viejo® wines; and Canada Dry Mott's Inc.'s Mott's® Clamato®, Snapple®, Tahiti Treat®, and Hires® ready-to-drink beverages. 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.
SOURCE Corby Spirit and Wine Limited
For more information, please contact: CORBY SPIRIT AND WINE LIMITED, Juan Alonso, Vice-President and Chief Financial Officer, [email protected]
Share this article