Mr. Nicolas Krantz reports

CORBY SPIRIT AND WINE LIMITED REPORTS ITS FISCAL 2024 SECOND QUARTER RESULTS FOR THE PERIOD ENDED DECEMBER 31, 2023 AND ANNOUNCES DIVIDEND OF $0.21 PER SHARE

Corby Spirit and Wine Ltd. has released its fiscal 2024 second quarter financial results for the three-month period ended Dec. 31, 2023, and the six-month period ended Dec. 31, 2023.

Q2 Revenue +23% and H1 Revenue +33% benefitting from the addition of Ace Beverage Group ("ABG") brands into our portfolio

Adjusted Earnings from Operations up +7% in Q2 and +21% in H1 (+1% and +5% Reported, respectively)

Quarterly Dividend declared of $0.21 per share

QUARTERLY DIVIDEND

The Corby Board of Directors is pleased to declare a dividend of $0.21 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company, consistent with the amount of last dividend payment. This dividend is payable on March 13, 2024 to shareholders of record as at the close of business on February 27, 2024.

MARKET TRENDS

Total Beverage alcohol market (excluding Beer and Cider) experienced a slight decline over the past 6 months due to:

Channel normalization with On-Premise channel back to pre-COVID-19 pandemic levels;

Spirits in slight decline but RTD (Ready-To-Drink) segment showing solid mid-single digit growth;

Value growth continuing to outpace volume across all categories.

FINANCIAL RESULTS

The second quarter of the fiscal year reflected Revenue growing +23% compared to the same period last year, driven by:

The contribution of the ABG portfolio of brands;

International markets' sales +18% driven by continued sales through new market opportunities;

Commissions on par with last year;

Domestic Case Good sales excluding ABG -1% consistent with market trend.

As a result of investment phasing and addition of ABG marketing activities and overheads, adjusted Earnings from Operations1 in the second quarter grew +7% (+1% Reported) versus the same period last year.

Benefitting from a strong Q1, Revenue for the first half was up +33% compared to the same period last year, driven by:

The contribution of the ABG portfolio of brands, contributing approx. one third of H1 Revenue;

International markets' sales +27% driven by shipments through new market opportunities;

Domestic Case Good sales excluding ABG -1% despite Spirits market general slowdown and stock level normalization at liquor boards, offset by;

Commissions -9% on high comparison basis (H1 FY23 +11% vs. prior year) with the lapping of high inventory levels from liquor boards seen last year to mitigate the supply chain disruption in the market.

In the first half, marketing, sales and administrative expenses increased +21% when compared to the same period last fiscal year, reflecting new marketing activities and overheads related to ABG brands, combined with J.P. Wiser's package redesign, Polar Ice media campaign and higher OND investments to sustain our sell-outs.

As a result, adjusted Earnings from Operations1 in H1 grew +21% (+5% Reported) versus the same period last year despite continued broad-based rising input costs.

During the first half, Corby incurred interest charges of $3.1 million as a result of its credit facilities and long-term debt linked to ABG acquisition, which totaled $127.5 million at the end of the period.

The acquisition of ABG triggered certain IFRS accounting treatments to adjust assets acquired in the business combination to their fair value at the acquisition date, resulting in a charge to cost of goods sold of $3.0 million before taxes in the first-half results.

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

"We continued during these first 6 months to achieve a robust market performance, including during the must-win festive season, outperforming the Spirits and RTD market; Our competitive advantage combines one of the most comprehensive portfolios of brands with excellence in execution.

I am also particularly pleased with the integration and contribution of ABG to Corby's results."

NEW CHAIR OF THE BOARD OF DIRECTORS

As announced on November 8, 2023, Mr. George McCarthy, Corby Chair and Director, has retired effective February 7, 2024. After review and discussion, the Board of Directors announced today that current Corby independent director, Mr. Lucio Di Clemente, has been appointed as the new Corby Chair.

"It is an honour to succeed George as Chair of the Board and I am very grateful for the opportunity to build upon his outstanding contributions to Corby over his long tenure. As I take on this new responsibility, I hope to continue George's legacy and commit to maintaining the high standards that he set, to enable the continued success of the company," said Mr. Di Clemente.

"As I now retire from my role as Chair after 30 years, I look forward to a future filled with new possibilities and achievements for Corby. I am very confident that Lucio will continue to lead the company, consistent with its values and principles, while bringing fresh ideas, innovative solutions, and a renewed energy to the position," said Mr. McCarthy.

For further details, please refer to Corby's Management's Discussion and Analysis and consolidated financial statements and accompanying notes for the three-and-six months period ended December 31, 2023, prepared in accordance with International Financial Reporting Standards.

Corby management will be participating in a live virtual non-deal roadshow to discuss its latest investor presentation on Friday, February 23, 2024, at 12:00 PM EST followed by a live Q&A. Corby welcomes stakeholders, investors, and other individual followers to register and attend this live event by registering using the link https://www.renmarkfinancial.com/companies/corby-spirit-and-wine-limited.

About Corby Spirit and Wine Limited

Corby Spirit and Wine Limited 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 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 Codigo 1530 tequilas, Jefferson's and Rabbit Hole bourbons, Kahlua 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.

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