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H1 FY25 results: Revenue for the first half of fiscal 2025 was $126.8 million, increasing by +$12.1 million or +11% versus the same period last year. The year-over-year growth can largely be attributed to the inclusion of Nude brands' revenue of $8.0 million. Organic revenue¹ reached $118.8 million, reflecting solid growth of +4% versus the prior year period with the following drivers:

• Domestic case goods revenue of $93.6 million, with growth of +3%, enhanced by the pipeline fill effect to grocery and convenience stores opening in Ontario and despite the negative impact of last Summer's LCBO labour strike;

• Commissions sales reached $16.1 million, reflecting growth of +16%, led by imported wines benefitting from RTM modernization in Ontario, and lapping destocking patterns at liquor boards in the prior year period; and

• Export revenue of $7.0 million, a decline of -9% year-over-year, lapping the pipeline fill to new markets in H1 FY24, despite a rebound in J.P. Wiser's performance in the US and good performance of Lamb's rum in the UK.

Marketing, sales and administrative expenses increased by $1.9 million, or +5% to $36.3 million in H1 FY25, reflecting the inclusion of marketing investments and overheads related to the Nude brands. Domestic investments lapped sponsorship and media campaign events from H1 FY24 not repeated this year, while Corby invested further to support our strategic brand J.P. Wiser's. Tight monitoring of overheads led to overall expenses increasing at a slower rate than revenue.

Corby delivered strong results in the first half of fiscal 2025, seen in Adjusted EBITDA¹ of $36.7 million, increasing by +9% versus the same period last year. Despite increased interest charges on a year-over-year basis related to the non-controlling interest obligation and the loan contracted to acquire ABG, Corby delivered reported net earnings of $17.2 million and adjusted net earnings¹ of $18.6 million in H1 FY25, increasing by +16% and +8% year-over-year, respectively. Reported net earnings include $0.4 million of costs related to Nude inventory adjusted to its fair value in the first quarter of fiscal 2025 and $2.2 million of costs related to ABG inventory adjusted to its fair value in the first half of fiscal 2024.

The Company generated solid cash flow during H1 FY25, with Cash Flow from Operating Activities of $35.6 million, an increase of $14.4 million year-over-year. Corby closed H1 FY25 with a healthy balance sheet and significant financial flexibility, with its Net Debt / Adjusted EBITDA¹ ratio (on a rolling 12-month basis) at 1.3x at quarter-end. Corby delivered a dividend payout ratio¹ of 53% as of quarter-end (on a rolling 12-month basis) based on Cash Flow from Operating Activities, highlighting the sustainability of the Company's quarterly dividend.

Corby's President and Chief Executive Officer, Nicolas Krantz, stated,

"I am proud of Corby's strong results in the first half of the fiscal year, which included continued value share gains and noteworthy revenue and earnings growth. In a challenging market context and uncertain environment, we continue to capitalize on our excellence in execution and leverage the strength and diversity of our portfolio to adapt successfully to channel expansion opportunities.

Given the strong growth in earnings we have realized and our robust cash flow generation year-to-date, our Board has approved an increase in our dividend this quarter of approximately 5%. This is the second dividend increase that we have announced in the last twelve months, reflecting our steadfast focus on balanced capital allocation and total shareholder returns, and signaling our continued confidence in the outlook ahead.

Looking ahead, we are closely monitoring regulatory and trade changes including the recent announcements regarding tariffs between the United States and Canada. However, regardless of the environment, we are confident in the resilience of our business, our ability to leverage our competitive advantages for value share gains, and the ability of our dedicated team to execute successfully on our strategic roadmap. We look forward to continue building on our strong track-record, generating additional value for our 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 and six-month periods ended December 31, 2024, prepared in accordance with IFRS Accounting Standards, available on www.sedarplus.ca and www.corby.ca/investors.

MARKET TRENDS

The overall spirits market declined -1.9% in value in the last rolling 12 months, notably impacted by the LCBO labour strike in July 2024. The RTD category was also impacted by the strike during the fiscal first quarter but benefitted from the route-to-market modernization in Ontario over the first half and remained one of the fastest growing categories overall in the last twelve months, increasing by +6.8% in value.

Corby has been outperforming the Canadian spirits market in value for more than two years, gaining share in most categories over this timeframe. Over the past twelve months, Corby spirits were resilient at -0.3% year-over-year and Corby RTDs (excl. Nude) were dynamic at +12% year-over-year, both outpacing the market in value growth. This outperformance reflects our ability to successfully navigate the strike and Ontario RTM changes, as well as the strength of our diversified product portfolio along with successful new product launches.

QUARTERLY DIVIDEND

The Corby Board of Directors is pleased to declare a dividend of $0.23 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company, an increase of $0.01, or +5% from the previous quarterly dividend at $0.22 per share. This dividend is payable on March 12, 2025 to shareholders of record as at the close of business on February 26, 2025.

QUARTERLY CONFERENCE CALL
Corby management will host a conference call on Thursday, February 13^th, 2025, at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q2 and H1 FY25 periods. Corby welcomes stakeholders, investors, and other individual followers to access the conference call by dialing 437-900-0527 or toll free 1-888-510-2154 before the start of the call, or by joining via webcast at https://app.webinar.net/d8BVGK7GMw5. Following the conclusion of the call, a playback of the conference call will be available for 30 days by calling 289-819-1450 or 1-888-660-6345 and entering passcode 61323 #.

NEW DIRECTOR OF THE CORPORATION
Also announced, Anne-Marie Poliquin has been appointed to the Corby Board of Directors, as one of Pernod Ricard's director nominees, succeeding Kate Thompson, who has resigned from her position as a Corby director effective February 12, 2025.

"Kate has been a significant contributor to Corby's recent successes. Her insight and experience have contributed greatly in guiding the company for over the past 7 years", said Lucio Di Clemente, Chair of the Board of Directors.

With more than four years at the Pernod Ricard Group, and over 30 years of international experience, Anne-Marie Poliquin brings extensive knowledge and understanding to the Corby Board of Directors, having served within the legal departments of various large multinational groups. She is currently EVP Legal and Compliance for Pernod Ricard S.A. and part of the Pernod Ricard Executive Committee based in Paris, France. Prior to that, she worked for General Electric, Mars and JDE Peet's, having worked in Canada, France, Belgium and the Netherlands.

"Anne-Marie brings significant international insight to Corby and is a key part of the leadership team for our majority shareholder, Pernod Ricard. I'm excited to collaborate with her as we continue Corby's goal to lead growth within the Canadian spirits, wine and ready-to-drink industry", said Mr. Di Clemente.

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", "Total Debt", "Net Debt", "Organic Revenue" and "Adjusted EBITDA" which are non-IFRS financial measures. 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 the costs incurred for business combination inventory fair value adjustments.

Adjusted EBITDA refers to Adjusted Earnings from Operations adjusted to remove amortization and depreciation disclosed in Corby's financial statements.

Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments and the notional interest charges related to NCI obligation, net of tax calculated using the effective tax rate.

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 and six-month periods ended December 31, 2024, and 2023:

The following table presents a reconciliation of adjusted EBITDA to their most directly comparable financial measures from the three-month period ended December 31, 2024 to the three-month period ended December 31, 2022:

Organic revenue growth is measured as the difference between revenue excluding case goods revenue from acquired or disposed brands compared to revenue in the preceding 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 and six-month periods ended December 31, 2024, and 2023:

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 December 31, 2024 and 2023:

Dividend Payout Ratio refers to annualized dividends paid divided by Cash Flow from Operating Activities.

Please refer to the "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios" section of our MD&A for the three-month and six-month periods ended December 31, 2024 as filed on SEDAR+ for further information regarding Non-IFRS measures.

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 and six-month periods ended December 31, 2024 as well as Corby's other public filings, available at www.sedar.com 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, 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, 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 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, Olmeca Altos^® and Código 1530^® tequilas, Jefferson's™ and Rabbit Hole^® bourbons, 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.

www.Corby.ca

SOURCE Corby Spirit and Wine Limited

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