Corby Spirit and Wine Limited (CSWA) Earnings Call Transcript
November 12, 2026
Earnings Call Speaker Segments
Good morning, ladies and gentlemen, and welcome. My name is Lucio Di Clemente, Chair of the Board of Directors of Corby Spirit and Wine Limited, and it's my pleasure to welcome you to our Annual Meeting of Shareholders. Joining me are Florence Tresarrieu, our President and Chief Executive Officer; Juan Alonso, our Vice President and Chief Financial Officer; and Marc Valencia, our General Counsel, Corporate Secretary and Vice President, Public Affairs. As noted in the materials, today's meeting will be conducted virtually. Instructions on how to ask questions and the voting procedure will appear on your screens. Should you have any issues, our platform service provider, Lumi is very experienced at running these types of meetings and will help you resolve them. Before we begin, as our opening slide reflects, we paused this morning to remember our fellow Director, Helga Reidel, who sadly passed on November 5. Helga served on the Corby Board with integrity and care, and she will be deeply missed. On behalf of the Board, I extend our heartfelt condolences to our husband Ralph, her sons and her family. I ask that we observe a moment of silence in remembrance of Helga. Thank you. I will now call the meeting to order. As a reminder, our presentation today may contain forward-looking statements. I draw your attention to the description of forward-looking statements, and I ask that you take a moment to review this before we begin the official business of today's meeting. The Annual Meeting of Shareholders of Corby Spirit and Wine Limited will now come to order. In accordance with the bylaws of the corporation, I shall preside as Chair of the meeting. With the consent of the meeting, Marc Valencia, will act as Secretary of the meeting. Before commencing the formal business of this meeting, in addition to Florence, Juan and myself, I would like to introduce the other members of the Board who are in attendance today. Pam Laycock, Nicola Krantz; Lani Montoya and Patricia Nielsen. And also before commencing the business of the meeting, I would like to comment on the voting procedure. We will conduct the votes on the matters before us by a poll. On a poll, every shareholder and proxy holder entitled to vote on the matter has 1 vote in respect of each share entitled to be voted on the matter and held by that shareholder. The poll will be open for all resolutions at the same time. This will allow you to choose to vote on each resolution immediately or wait until the conclusion of discussion on each resolution prior to casting your votes. The polls are now also. To make the best use of our time, Jordan Giurlanda and Marc Valencia have been asked to move the resolutions which we will consider. I will call on them at the appropriate time. With the consent of the meeting, I now appoint Pina Pacifico and Teresa DeLuca, of Computershare to act as scrutineers. I would ask the scrutineers to prepare the report showing the number of shareholders present at the meeting, the number of shares held by those present, the number of shares represented by proxy and the aggregate amount of shares represented and to register any vote given in a poll taken on any motion properly brought before the meeting. The notice calling this meeting and the accompanying proxy materials were mailed on October 8 to all shareholders of record who requested them on September 1, together with the consolidated financial statements of the corporation and the independent auditor's report thereon. Accordingly, with the consent of the meeting, we will dispense with the reading of the notice of the meeting. The secretary has received proof of mailing to the shareholder of the notice of the meeting and the proxy materials. I direct that the proof of mailing be annexed to the minutes of this meeting. I am advised that there is a quorum present. I now declare that the meeting is regularly called and properly constituted for the transaction of business. Unless there is a request to read the minutes of the last Annual Meeting of Shareholders held on November 13, 2025, they will be taken as read. If you would like to submit your request, please select the messaging icon at the top of your screen, type your message within the text box at the bottom of the messaging screen and then click the send button. As there is no request to read the minutes, I do take the minutes as read. The 2026 Annual Report, including the corporation's consolidated financial statements for the year ended January 30, 2026, and the independent auditor's report was mailed on October 8, 2026, to all shareholders who requested these documents. It is not required to ask shareholders to approve the financial statements. However, we would be pleased to deal with any relevant questions regarding the financial statements during the general question period, which follows the termination of this meeting. The next item on the agenda is the election of 7 directors to the Board of the corporation, and the meeting is now open for nominations. I would ask Jordan Giurlanda to kindly read the nominees' names.
Mr. Chair, I nominate the following individuals for election to the board to hold office during the ensuing year. Lucio Di Clemente, Juan Alonso, Nicolas Krantz, pam Laycock, Lani Montoya, Patricia Nielsen and Florence Tresarrieu.
Are there any further nominations. There are no further nominations. I declare the nominations closed. I would ask Jordan Giurlanda propose motion for the election of the directors nominated.
Mr. Chair, I move that the directors nominated be elected to the Board of Directors.
May I have the motion seconded?
Mr. Chair, I second the motion.
You've heard the motion. Are there any comments or questions? Again, if you'd like to submit a question or a comment, please select the messaging icon at the top of your screen, type your message within the text box at the bottom of the messaging screen and then click The send button.
There is no discussion at this time.
As there is no discussion, I now call for a vote on the motion before the meeting. Would all those eligible to vote, please enter your votes in Lumi now. [Voting]
Okay. Moving on to the next item, I would like to inform you that Corby's independent auditors, KPMG LLP, are eligible for reelection. I would ask Jordan Giurlanda to propose a motion for the appointment of the auditors for the ensuing year and for the Board of Directors to be authorized to fix the auditor's remuneration.
Mr. Chair, I move that KPMG LLP be appointed auditors for the ensuing year and that their remuneration be as determined by the Board of Directors. May I have the motion seconded?
Mr. Chair, I second the motion.
You have heard the motion. Is there any discussion? As a reminder, to submit a question, please select the messaging icon at the top of your screen, type your message in the text box and then click the send button.
There is no discussion at this time.
As there is no discussion, I now call for a vote on the motion before the meeting. Would all those eligible to vote, please enter your votes on LUMI now. The polls are now closed. Based on preliminary voting results, I can confirm that all resolutions have been approved Final results will be posted online at SEDAR. I would now call upon our President and CEO, Florence Tresarrieu, to present a report on the corporation's activities. Juan Alonso, our Vice President and CFO, will also report on the corporation's financial performance. Over to you, Florence.
Thank you, Lucio, and good morning, everyone. It's very much a pleasure to be here today and to connect with our shareholders. I would like to begin by thanking our Board of Directors for the guidance and support throughout the year. I would also like to thank our employees, customers and partners across Canada whose commitment and dedication continue to drive our success. Let's start with the market context. Fiscal 2026 was a strong year for Corby. We delivered double-digit revenue growth, with net sales increasing 10% on a reported basis and 11% organically, as you will hear from Juan. We delivered record revenue, accelerated growth across our ready-to-drink portfolio and strengthen our position across key galleries. These results reflect strong execution, supported by favorable market developments, which includes the expansion of the distribution and the removal of many U.S. products from shelf in several provinces. We are pleased with this performance, but remain prudent by the year ahead as some of those benefits may unwind and the market dynamics remain volatile. As I complete my first full year as President and CEO, have spent time with employees, customers, partners and many of our shareholders, what stands out most is Corby's ability to adapt with speed and purpose Across the business, I have seen teams response to change, remain close consumers and turn uncertainty into opportunities. Consumer preferences are evolving quickly. Competitive dynamics can shift rapidly and the broader environment remains uncertain. But throughout FY '26, our teams responded with flexibility, resilience and very much entrepreneur mindset, that ability to adapt was a key driver of our success. As we enter FY '27, our outlook is prudent. Today's operating environment continue to present both challenges but also opportunities. Consumer confidence remained under pressure, competition is intense and economic and geopolitical developments continue to create uncertainty. We're also cycling an elevated income basis following the strong performance delivered in FY '26. Part of that performance reflected favorable market developments, including expanded RTD distribution and the removal of U.S. products from shelf in several provinces and some of those benefits may unwind over the year ahead. At the same time, the business give us a solid condition to navigate these conditions and keep moving forward. This is why our approach for the year ahead is clear: execute with discipline, stay close to consumers and remain agile. So what does it look like in practice? And how are we preparing for what's next? One of Corby's greatest trends is the diversity of our portfolio. It's at the heart of this year annual report crafted for tomorrow. As a unique multi-beverage alcohol company in Canada, we have deliberately built portfolio with a breadth that reduced our reliance on any single category brand or consumer trends. This is what crafted for tomorrow means of course, a business built to stay resilience, whatever tomorrow brings. We have a position across spirits, wine, and ready-to-drink which gives us the flexibility to adapt as consumer preferences evolve while continuing to invest behind long-term growth opportunities. Ready-to-drink remain a key growth engine throughout FY '26, driven by innovation, focused commercial execution and evolving route-to-market strategy. Our Canadian portfolio also continued to perform strongly. Brands such as J.P. Wiser's and Polarize demonstrate how heritage, relevance and innovation can work together to create growth. Together, these examples demonstrates the value of maintaining a broad and balanced portfolio capable of performing across different market conditions. Innovation remains critical to our success. Consumer preferences continue to evolve, preferences develop quickly, trends emerge rapidly and occasions continue to reshape the market. To stay ahead, we must remain close to the consumers and explore new ideas and adapt currently. Of course, not every innovation will succeed our process, to test selectively, learn quickly and focus investments and ideas with the strongest potential. A good example is J.P. Wiser's Canada Dry RTD, which brought a classic Canadian serve into a convenient new format. It demonstrates how we continue to evolve our brands while staying very much true to their heritage. Another good example from the [indiscernible] portfolio is Malibu Pink, a bold, innovation that turns an entree tropical favor with the unmistakable Malibu character consumers know and love. Its strong early momentum show how distinctive innovation can attract new consumers, while supporting the broader brand family. That same mindset is shaping how we evolve the organization. Over the past year, we've taken deliberate steps to simplify the business, clarify accountability and bring decision closer to consumer and customers. The aim is to respond faster to changing demand and focus on our people and resources where they can create the greatest value. Corby is committed to actively managing our portfolio to create long-term value. And that means investing behind our strongest opportunities and making disciplined choices about where our brands, people and resources can generate sustainable growth. The recent divestiture of LEMS is one good example of that approach. It allows us to sharpen our strategic focus, strengthen our financial position and direct resources towards category and brands where we see the greatest opportunity for sustainable growth and value creation. Our responsibility also extends beyond commercial performance. We remain very much committed to promoting responsible consumption, reducing our environmental impact and supporting the communities in which we operate. These priorities are part of how we build resilient brands, earn trust and create value over the long term. Another important advantage for Corby is the strength of our partnerships. Our relationship with Pernod Ricard continues to provide access to world-class brands, innovation capabilities and global expertise. We are also increasingly leveraging the scale and capabilities of Pernod Ricard North America. We believe there is significant opportunity to create additional value through greater collaboration across the region. In addition, our subsidiary, Ace Beverage continues to strengthen our position within RTD and give us direct presence in some of the fastest-growing segments of the markets. These strengths came together to deliver a strong year for Corby. To take us through that performance in more detail, I will now hand over to our Vice President and Chief Financial Officer, Juan Alonso for a deeper look at our financial results for the past year.
Good morning, everyone. I'm Juan Alonso, Corby's CFO, and I'm very pleased to present to you today Corby financial results for the full year of FY 2026 that were disclosed to the market in August and briefly discuss our first quarter results for fiscal 2027 released yesterday after the markets close. Very quickly, before we talk about our financial performance, you noticed some mentions of adjusted metrics and organical revenue growth. We believe that this non-IFRS financial measures support a better understanding of our underlying business performance and trends. We provided detailed explanation of each of those elements in our Q4 FY 26 and Q1 FY '27 MD&A, and I invite you to refer to these documents for any questions related to it. Fiscal year '26 marked a full year of earnings growth and continued market share gains in a volatile market environment. Over fiscal year 2026, Corby generated $271.6 million in revenue, a 10% increase over FY '25 on a reported basis and an 11% increase on an organic basis. This performance achieved in a challenging retail environment, represents the highest annual revenue recorded in Corby's history, highlighting the strength of our diversified portfolio and our agility in responding to market shifts. With our record top line performance, coupled with strategic investments behind key brands and diligent control of expenses, Corby also delivered a record high annual adjusted earnings from operations, reaching $53.7 million, up 12%, adjusted earnings per share were $1.23, up 15%, with reported earnings per share at $1.17, up 22%. Our cash from operating activities totaled $37.1 million, $7.7 million decrease year-over-year, driven by working capital increases and higher income tax payments. We also strengthened our balance sheet, reducing our net debt to adjusted EBITDA ratio to 1.3x, down from 1.4x at the end of FY '25. This reflects our strong solvency and financial discipline. Total dividends declared for FY '26 were $0.90 per share, up 5% from FY '25 reinforcing our commitment to consistent and growing returns for our shareholders. Now let's go to the next slide and delve deeper into our full year 2026 revenue growth. As just mentioned, Corby's all-time high annual revenue of $271.6 million in FY '26 can be broken into 3 key segments: Firstly, domestic case goods, which accounted for 81% of Corby's net sales performance, reached $220.7 million reflecting 12% reported growth and 13% organic growth. This is driven by ongoing RTD business acceleration and improved shelf permittance of Corby spirits, capitalizing on the removal of U.S. origin products in key provinces. Total commissions made up 11% of net sales and totaled $24.4 million, a slight decline of 4% versus last year. The represented wines portfolio faced a strong comparison basis last year, reflecting a higher commission rate and a strong pipeline of fuel to grocery and convenience store channels in Ontario last year. The addition of the [indiscernible] RTD portfolio representation partly offset this decline. Lastly, export revenue, which contributed 7% to total net sales increased to $18.2 million, up 22% year-over-year largely driven by strong shipment expansion in Turkey and Eastern Europe as well as the strong growth of J.P. Wiser's in the U.S. Turning now to our earnings performance. In fiscal year 2026, Corby's earnings grew at a faster pace than revenue, which reflects our diligent management of costs across the business. Corby delivered record adjusted earnings from operations of $53.7 million, up 12% year-over-year, ahead of our 10% reported revenue growth. Reported earnings from operations grew 16% as we lapped onetime costs recorded in fiscal year 2025. Gross margin grew 9% over the year. Our margin rate was impacted by the RTD weighted mix of our growth and higher input costs on domestic spirits. The strategic investments behind our key brands coupled with diligent control of marketing and administrative expenses more than offset these pressures. As a result, total operating expenses grew 9%, below revenue growth, and our adjusted operating margin improved to 20%. Below earnings from operations, net financial expenses decreased 7%, reflecting the reduction of our debt, partially offset by higher income tax. On the bottom line, Corby delivered reported net earnings growth of 22% and adjusted net earnings growth of 15%. This translates into reported earnings per share of $1.17, up 22% and adjusted earnings per share of $1.23, up 15%. These results demonstrate Corby's ability to protect profitability in a challenging environment. and to convert our record top line into strong earnings growth for our shareholders. In fiscal year 2026, Corby generated $37.1 million of cash from operating activities, a decline of $7.7 million from last year, driven by working capital increases related to higher receivables and RTD inventory and also higher income tax payments. Despite the decreased cash flow compared to last year, Corby's cash generation ability remains strong. supported by our underlying earnings growth. This allows Corby to pay strong dividends, increased our stake in ABG to 95% and still reduced net debt to $88.4 million, a $2.6 million improvement compared to FY '25 after loan repayments. As a result, our net debt to adjusted EBITDA reduced to 1.3% from the 1.4% at the end of Q4 FY '25, demonstrating a strong solvency position and reinforcing our financial health. Corby has an attractive dividend payout ratio at 72% of cash flow from operating activities on a rolling 12-month basis. Total dividends declared for FY '26 were $0.90 per share, up 5% from FY '25 reflecting our commitment to providing consistent and predictable shareholder returns. We are very proud of our performance in fiscal year 2026, and remain focused on delivering long-term value for our stakeholders and shareholders as we enter fiscal year 2027, with a strong diversified portfolio, disciplined execution and a clear strategy, Corby is well positioned to continue driving growth and shareholder returns. Now let's share a word on our results for the first quarter of fiscal year 2027, released November 11 after market closed, and I invite you to join our quarterly earnings conference call on November 13, tomorrow at 9 a.m. Eastern Time. In the first quarter of this fiscal year, Corby delivered solid results driven by continued RTD growth offsetting softer spirits. Corby generated $72.5 million in revenue, a minus 4% decrease over Q1 of fiscal year 2026 due to the sale of Lamb's rum brand on August 5. On organic basis, however, revenue increased 1% year-over-year, driven by RTD growth. And importantly, this growth comes on top of a very strong Q1 prior year performance when revenue grew 16% last year. With the strategic investments behind the key brands and diligent control of expenses, our adjusted earnings from operations continued to grow at a faster rate than revenue, totaling $18.9 million, up plus 15%, leading to a solid plus 18% in adjusted earnings per share and plus 171% growth in reported earnings per share after including the net proceeds from the sales of Lamb's. Our cash from operating activities totaled $7.4 million, a $1.8 million increase year-over-year. That was supported by earnings growth, disciplined management of costs and favorable working capital changes. Finally, the Board of Directors declared a Q1 F '27 dividend at $0.25 per share, consistent with the fourth quarter of fiscal year 2026, when it was last increased. Now I pass it on to Florence for the final comments.
Thank you, Johan. As I mentioned earlier, we're approaching FY '27 with prudence. We remain confident in the fundamentals for business, a diversified portfolio, strong brands, talented teams and value partnerships. Our priority in FY '27 is to execute with discipline to stay close to consumer and customers to accelerate the opportunities with the strongest potential and to continue simplifying how we operate. We remain agile as conditions change while directing investments towards sustainable long-term value. In closing, I would like to thank the dear employees, customers, partners and shareholders for the continued trust and support. The year ahead will require focus and adaptability, but we enter it with confidence to differentiate Corby, our diversified portfolio, our people, our partnerships and our ability to execute with discipline. We will build on the strengths to create sustainable value for shareholders and continue shaping Corby for the future. Thank you, and I will now hand back to Lucio.
Thank you, Florence and Juan. As you just heard, 2026 was an exceptional year, and we're off to a good start in Q1 of 2027. So with that, I ask if there's any further business to bring before the meeting.
There's no further business at this time.
On behalf of the Board, I would like to express our sincere appreciation to all Corby employees for their continued dedication and hard work throughout the year. Also to my fellow directors, thank you for your ongoing support and counsel. I would particularly like to express our sincere gratitude to Anne-Marie Poliquin as she concludes her service on the Corby Board. We are truly grateful for her time, energy and expertise. She has shared with us and for her valuable contributions to Corby. And again, we also remember Helga Reidel with gratitude for our service to Corby and send our thoughts to her family. Thank you all for your continued dedication and support. I would now ask Jordan Giurlanda to propose a motion for the termination of the meeting.
Mr. Chair, I move that the meeting be terminated.
May I have the motion seconded?
Mr. Chair, I second the motion.
The motion is carried. Ladies and gentlemen, the meeting is now concluded. So the floor is now open for questions on any matters raised in the report on the corporation's activities. Again, if any voting shareholder or proxy holder would like to submit a question, please select the messaging icon at the top of your screen, type in your message and then click the Send button. We may direct your questions to either Florence or Juan or Marc, whoever can best answer them.
There are no questions at this time.
With no further questions, I would like to thank you for joining us today. A reminder that tomorrow morning, we have our Q1 conference call at 9:00 a.m. and I wish everybody a great day. Thank you.
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