Mr. Nicolas Krantz reports

CORBY SPIRIT AND WINE LIMITED REPORTS ITS FISCAL 2024 FIRST QUARTER RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2023 AND ANNOUNCES DIVIDEND OF $0.21 PER SHARE

Corby Spirit and Wine Ltd. today released its financial results for its fiscal 2024 first quarter for the period ended Sept. 30, 2023.

• Q1 revenue plus 43 per cent with the addition of Ace Beverage Group (ABG) brands into the company's portfolio;
• Adjusted earnings from operations up plus 36 per cent (plus 9 per cent reported);
• Quarterly dividend declared of 21 cents per share.

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, consistent with the amount of last dividends payment. This dividend is payable on Dec. 8, 2023, to shareholders of record as at the close of business on Nov. 24, 2023.

Market trends

The spirits and RTDs (ready to drink) market remains in low-single-digit value growth driven by:

• Flat retail channel;
• On-premise channel now normalizing following impacts of the COVID-19 pandemic;
• Value growth continuing to outpace volume across all categories;
• Ready-to-drink (RTD) segment showing good growth.

Financial results

The first quarter of the fiscal year ended with revenue growing plus 43 per cent compared with the same period last year, driven by:

• The contribution of the ABG portfolio of brands, representing approximately one-third of Q1 revenue;
• International markets sales plus 38 per cent driven by shipments through new market opportunities;
• Domestic case good sales excluding ABG plus 1 per cent consistent with market trend, offset by;
• Commissions negative 17 per cent on high comparison basis (Q1 fiscal 2023 plus 27 per cent versus prior year) with the lapping of the holiday season preordering pattern from liquor boards seen last year to mitigate the supply chain disruption in the market.

In the first quarter, marketing, sales and administrative expenses increased plus 16 per cent when compared with the same period last fiscal year, reflecting new marketing activities and overheads related to ABG brands, combined with Wiser's package redesign and Polar Ice media campaign.

As a result, adjusted earnings from operations in the first quarter grew plus 36 per cent (plus 9 per cent reported) versus the same period last year despite continued broad-based rising input costs.

During the quarter, Corby incurred interest charges of $1.6-million as a result of its credit facilities and long-term debt linked to ABG acquisition, which totalled $114.0-million at the end of the period.

The acquisition of ABG triggered certain IFRS (international financial reporting standards) accounting treatments to adjust assets acquired in the business combination to their fair value at the acquisition date, resulting in a charge to costs of goods sold of $2.8-million before taxes in the first quarter results.

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

"I am pleased to share that we kept up the solid momentum of our commercial performance as we have now outperformed the spirits and RTDs market in value for four consecutive quarters, validating our brands prioritization strategy initiated last year.

"Over all, we have made a good start to the year despite signs of market general slowdown, capturing growth opportunities notably through the addition of ABG brands into our portfolio to generate further value to our shareholders."

Retirement of chair

The Corby board of directors announced the retirement of George McCarthy, effective Feb. 7, 2024. After 30 years of dedicated service, Mr. McCarthy will be stepping down from his role as chair and director of the company. During Mr. McCarthy's long tenure, Corby experienced significant growth and success, achieved numerous milestones and maintained a strong commitment to innovation.

"On behalf of Corby and many others, I'd like to congratulate George on a fantastic career. From his early days at Gallo, Seagram and Allied Domecq Spirits and Wine, George joined the Corby board in 1993, bringing his extensive experience and deep knowledge of the industry. Since becoming Corby chair in 1999, George helped guide Corby through many transitions and key moments. One can only hope to look back at a career with as much pride and accomplishment as him! We wish him all the best on his well-deserved retirement," said Mr. Krantz.

"Over the last 30 years, I have witnessed the incredible growth and transformation of the company, and I am immensely proud of what we have achieved together. As I step down from my position. I am confident that Corby is in capable hands, and I have full faith in the leadership team to steer us toward an even more prosperous future," said Mr. McCarthy.

Mr. McCarthy will be greatly missed, and the entire Corby family extends its heartfelt appreciation for his outstanding contributions to the company's success. As Mr. McCarthy embarks on this new chapter, Corby remains committed to upholding the values and principles that have been the foundation of its growth.

The board of directors has initiated a search to identify and appoint a new chair.

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

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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