Mr. Nicolas Krantz reports

CORBY SPIRIT AND WINE LIMITED REPORTS ITS FISCAL 2023 FOURTH QUARTER AND YEAR-END RESULTS AND ANNOUNCES DIVIDEND OF $0.21 PER SHARE.

Corby Spirit and Wine Ltd. has released its financial results for the fiscal 2023 fourth quarter and year ended June 30, 2023. Q4 revenue increased 7 per cent and full-year 2023 revenue increased 2 per cent, underpinned by solid commercial performance. Quarterly dividend declared of 21 cents per share, normalizing to FY 2019 prepandemic levels.

Quarterly dividend

The Corby board of directors is pleased to declare a dividend of 21 cents per voting Class A common share and non-voting Class B common share of the company, normalizing to FY 2019 prepandemic levels. This dividend is payable on Sept. 29, 2023, to shareholders of record as at the close of business on Sept. 15, 2023.

Spirits market trend

The domestic spirits market continued to show solid value growth, driven by pricing and mix premiumization while seeing a normalization across the off- and on-premise channels to FY 2019 prepandemic levels.

Financial results

The fourth quarter of the fiscal year ended with revenue growing 7 per cent compared with the same period last year, driven by:

• Positive shipments phasing resulting in international markets sales increasing 57 per cent due to new markets opportunities and continued United States market development with the company's flagship brand, J.P. Wiser's;
• Commissions increased 17 per cent, reflecting solid commercial performance and pricing strategy, partly offset by:
  • Softer domestic case good sales decreasing 1 per cent.

As a result, full-year revenue for the fiscal year 2023 grew by 2 per cent versus last year, driven by:

• Robust performance for domestic case goods sales increasing 3 per cent, with strong underlying demand and price increases across the portfolio;
• Strong export sales increasing 9 per cent, driven by premiumization in the U.S. and opportunities in new markets;
• Commissions increased 1 per cent, with positive momentum on spirits partially offset by softer trends on wines and supply chain disruptions.

In the fourth quarter, marketing, sales and administrative expenses increased 9 per cent, reflecting investments in the company's key brands and organizational streamlining costs. Marketing, sales and administrative expenses increased moderately, 2 per cent, in full-year fiscal 2023 versus last year, reflecting tight resource management focused on key strategic brands and priorities.

Adjusted net earnings in the fourth quarter declined 6 per cent as result of rapidly rising costs (reported net earnings decreased 48 per cent in the fourth quarter versus the same period last year). Adjusted net earnings in the fiscal year 2023 slightly declined, by 1 per cent, versus the same period last year (reported net earnings decreased 6 per cent in full-year FY 2023 versus last year), affected by unprecedented rising input costs (9-per-cent increase in full-year FY 2023 versus last year) in the global inflationary environment.

Corby's president and chief executive officer, Nicolas Krantz, stated:

"Our brands continue to resonate strongly with consumers, and I am proud to close our fiscal year with our total spirits portfolio outperforming the market in a very competitive and volatile environment. Our performance validates our pricing strategy, portfolio prioritization and excellence in execution from all of our teams.

"Since the onset of the pandemic, we successfully overcame a number of challenges while building solid foundations for the future through investments in our brands, people and capabilities. The recent acquisition of the Ace Beverage Group, with its prominent position in the fast-growing and highly attractive RTD (ready-to-drink) segment, is a unique opportunity to enhance our growth profile.

"I am excited to lead Corby into this new chapter as we are well positioned to continue creating value for our shareholders."

For further details, please refer to Corby's management's discussion and analysis, and consolidated financial statements and accompanying notes for the three months and year ended June 30, 2023, prepared in accordance with international financial reporting standards.

The associated table presents a reconciliation of earnings from operations to adjusted earnings from operations and net earnings to adjusted net earnings to their most directly comparable financial measures for the three months and year ended June 30, 2023, and 2022.

About Corby Spirit and Wine Ltd.

Corby is a leading Canadian manufacturer, marketer and distributor of spirits and imported wines. 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, and Foreign Affair wines and Cottage Springs ready-to-drink beverages. Through its affiliation with Pernod Ricard SA, 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 whisky, Beefeater gin, Malibu rum, Kahlua liqueur, Mumm champagne, and Jacob's Creek, Wyndham Estate, Stoneleigh, Campo Viejo, and Kenwood wines.

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