In This Article:
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Corby Spirit and Wine Ltd (CBYDF) reported a strong double-digit revenue growth of 10% in Q2, with a 4% organic growth.
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The company successfully capitalized on the modernization of the route to market in Ontario, expanding distribution to nearly 6,000 points.
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Corby Spirit and Wine Ltd (CBYDF) increased its quarterly dividend by nearly 5%, reflecting confidence in its financial outlook.
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The acquisition of ABG has been pivotal in achieving growth, particularly in the fast-growing ready-to-drink category.
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The company demonstrated strong cash flow generation, maintaining a healthy net debt to adjusted EBITDA ratio of 1.3.
Negative Points
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The spirits category has experienced a moderate decline over the last 12 months, posing a challenge for market growth.
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The company faced supply chain disruptions due to the LCBO strike, impacting the beverage industry.
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Increased interest charges related to the loan for acquiring ABG affected net earnings.
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International case goods revenue declined by 2%, partly due to lapping the pipeline fill to new markets last year.
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The ongoing situation with US tariff threats and potential regulatory changes presents uncertainty for future operations.
Q & A Highlights
Q: Can you provide an overview of Corby Spirit and Wine Ltd's financial performance in Q2 2025? A: Juan Alonso, Vice President and Chief Financial Officer, reported that Corby Spirit and Wine Ltd achieved a revenue of $61.7 million in Q2 2025, reflecting a 10% growth. The adjusted EBITDA was $17.2 million, a 10% increase from the previous year. Adjusted net earnings per share were $0.30, with reported earnings per share at $0.28, both increasing by 8% year over year. The company also declared a dividend of $0.23 per share, a 5% increase from the previous quarter.
Q: What were the main drivers behind the revenue growth in Q2 2025? A: The revenue growth was primarily driven by the inclusion of sales from the recent acquisition of Nude, which contributed over $3 million. Organic revenue growth was 5%, supported by strong performance in the ready-to-drink (RTD) portfolio, particularly Cottage Springs, and the expansion of distribution channels in Ontario.
Q: How did Corby Spirit and Wine Ltd perform in the first half of FY25? A: For the first half of FY25, Corby recorded a revenue of $126.8 million, reflecting an 11% growth. The adjusted EBITDA was $36.7 million, a 9% increase from the previous year. Adjusted net earnings per share were $0.66, with reported net earnings per share at $0.60, increasing by 8% and 16% respectively. The company also improved its cash flow from operating activities to $35.6 million.