Corby Spirit and Wine Limited reports record high Q3 fiscal 2026 results and declares quarterly dividend of $0.24 per share

Corby Spirit and Wine Ltd, Pernod Ricard SA

Corby Spirit and Wine Limited reports record high Q3 fiscal 2026 results and declares quarterly dividend of $0.24 per share

May 14 2026 21:13 BST

TORONTO , May 14, 2026 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A, CSW.B), a leading Canadian manufacturer, marketer and importer of spirits, wines and ready-to-drink cocktails ("RTDs"), today announced its financial results for the fiscal third quarter ("Q3") and the nine-month period ended March 31, 2026 ("FYTD March").

Record high Q3 and FYTD March results driven by ongoing RTD business expansion, favourable LCBO order phasing, and continued market share gains in spirits

Q3 Revenue of $58.3 million (+21% year-over-year) and Organic Revenue¹ +22%
FYTD March Revenue of $200.6 million (+15%) and Organic Revenue¹ +16%

Q3 Adjusted EBITDA¹ of $15.2 million (+30%)
FYTD March Adjusted EBITDA¹ of $52.8 million (+9%)

Q3 Adjusted Net Earnings¹ of $7.6 million (+67%) (Reported +97%)
FYTD March Adjusted Net Earnings¹ of $27.7 million (+20%) (Reported +27%)

Quarterly Dividend declared at $0.24 per share

FINANCIAL RESULTS

Q3 FY26 results: Revenue for the third quarter of fiscal 2026 was $58.3 million, an increase of $10.2 million or 21% compared to the same period last year. Organic revenue¹, which excludes the contributions in both the current period and the comparable period from non-core brands that have been disposed, saw slightly higher growth of 22% year-over-year, driven by the following:

Domestic case goods revenue of $48.2 million, up 35% year-over-year, driven primarily by continued strength in the RTD business across Western Canada and Ontario, benefitting from the route-to-market ("RTM") modernization and LCBO markup change in Ontario. LCBO order phasing was also favourable in Q3 as certain shipments were pulled forward ahead of the LCBO Enterprise Resource Planning system upgrade. In addition, Corby's spirits business continues to benefit from the removal of US-origin products from retail shelves in key provinces, resulting in market share gains in spirits despite a declining spirits market (see Market Trends section);
Commissions of $6.0 million, down 11% year-over-year, impacted by the represented wines portfolio lapping a higher comparison basis in Q3 FY25 impacted by RTM modernization pipeline fill in Ontario;
Export case goods sales of $3.3 million, down 20% year-over-year, impacted by unfavourable shipment phasing following a strong first half of the fiscal year, plus the prior-year comparison period reflecting pipeline fill in the U.S. in anticipation of tariffs.

In the third quarter of fiscal 2026, gross margin rate remained stable year-over-year at 51% despite Corby RTDs comprising a greater share of total revenue, benefitting from margin optimization within the RTD portfolio.

In the third quarter of fiscal 2026, marketing, sales and administrative expenses were $17.9 million (+5% year-over-year), which grew at a slower rate than revenue, reflecting targeted investment behind key brands and careful resource management to support the rapid growth of Corby's RTD business.

Earnings from Operations and Adjusted Earnings from Operations¹ totaled $12.5 million and $11.6 million respectively in the third quarter of fiscal 2026, representing year-over-year growth of 63% and 52%, respectively, reflecting strong revenue growth and disciplined cost management.

Adjusted EBITDA¹ for the third quarter of fiscal 2026 was $15.2 million, an increase of 30% compared to the same period last year. Net Earnings was $7.9 million and Adjusted Net Earnings¹ was $7.6 million in Q3 FY26, an increase of 97% and 67% year-over-year, respectively.

FYTD March 2026 results: Revenue for the first nine months of fiscal 2026 totaled $200.6 million, an increase of $25.8 million or 15% year-over-year. Excluding the impact from non-core disposed brands in both the current period and the comparable period, organic revenue¹grew $27.2 million or 16%, driven primarily by:

Domestic case goods revenue of $161.9 million, up 20% year-over-year, driven by the continued expansion of the RTD business across key provinces, strong spirits market share gains partly due to the removal of US-origin products from retail shelves in key provinces and favourable LCBO shipment timing;
Commissions revenue of $22.0 million, down 4% year-over-year, impacted by the represented wines portfolio lapping a higher comparison basis in the prior-year impacted by RTM modernization pipeline fill in Ontario;
Export revenue of $13.0 million, up 17% year-over-year, driven by new channel pipeline fill in strategic Eastern European markets, as well as improved volume-to-value conversion of Lamb's rum in the UK.

Marketing, sales and administrative expenses were $56.4 million in the first nine months of fiscal 2026, an increase of $3 million, or 6% compared to the prior year period, significantly below revenue growth, reflecting ongoing diligent cost management. Those investments reflect continued support for the growing RTD business, brand-building initiatives, and strategic partnerships for our spirits brands – notably the J.P. Wiser's multi-year Canadian partnership with the National Hockey League.

Earnings from Operations and Adjusted Earnings from Operations¹ totaled $42.8 million and $41.9 million, respectively in the first nine month of fiscal 2026, increasing by 20% and 16% year-over-year. Strong revenue growth and diligent cost management was partly offset by an RTD-skewed portfolio mix and channel mix impacts on gross margin.

Adjusted EBITDA¹ for the first nine months of fiscal 2026 was $52.8 million, an increase of 9% compared to the same period last year. The new representation agreement with Vinarchy, signed in the first quarter of fiscal year 2026, resulted in lower amortization of upfront fees relative to when the brands were owned by Pernod Ricard in the same period last year, resulting in a slower growth rate in Adjusted EBITDA¹ compared to Adjusted Earnings from Operations¹. Average annualized cash flows over the life of the agreements are expected to remain broadly consistent.

Corby reported Net Earnings of $26.9 million and Adjusted Net Earnings¹ of $27.7 million in the first nine months of fiscal 2026, an increase of 27% and 20% year-over-year, respectively.

In the first nine months of fiscal 2026, Corby's cash flow from operating activities totaled $19.4 million, a decrease of $9.8 million or 34% year-over-year, primarily due to working capital changes driven by increased receivables with customers due to sales phasing in the quarter, as well as increased inventory to support RTD business growth ahead of summer season. Despite this, Corby closed Q3 FY26 with a Net Debt / Adjusted EBITDA¹ ratio (on a rolling 12-month basis) of 1.4x, illustrating the continued health of its balance sheet. Corby recorded a dividend payout ratio¹ of 76% over the last four quarters, reflecting its sustainable shareholder return policy and balanced capital allocation strategy.

Corby's President and Chief Executive Officer, Florence Tresarrieu, stated,

"Q3 marked a quarter of very strong earnings growth for Corby as we continue to build on the momentum established in the first half of the fiscal year. Revenue grew at a strong pace, driven by the expansion of our RTD portfolio, and benefiting from LCBO order phasing in Q3, while disciplined cost management and strong commercial execution supported even stronger earnings growth. As expected, Q4 is anticipated to be significantly softer as LCBO ordering patterns normalize and spirits market declines persist. Despite this, we remain on track to deliver high single – digit revenue growth for FY2026, reaching a record revenue level for the company.

Despite a volatile industry backdrop, our team has demonstrated resilience and agility, enabling us to capture incremental market share across both spirits and RTDs. This reflects the strength of our strategy, portfolio, and partnerships.

Looking ahead, our focus remains on delivering sustainable, profitable growth, while maintaining a healthy balance sheet to continue delivering a sustainable dividend to our shareholders. We will achieve this through continued investment in our core brands, continuing to support our RTD business expansion, and capitalizing on new opportunities as the Canadian retail and regulatory landscape evolves, while keeping a prudent approach to managing costs.

I would like to thank our employees, customers, and partners for their continued commitment, which positions Corby to deliver long-term value for our shareholders."

For further details, please refer to Corby's Management's Discussion and Analysis and interim condensed consolidated financial statements and accompanying notes for the three-month and nine-month periods ended March 31, 2026, prepared in accordance with IFRS Accounting Standards, available on www.sedarplus.ca and www.corby.ca/investors.

MARKET TRENDS

In the third quarter of fiscal 2026, Corby delivered strong performance in a market impacted by structural changes in Ontario's beverage alcohol retail environment. While the overall spirits category declined 4.2% in value year-over-year, Corby maintained stable retail sales value, extending its track record of outperformance. As a result, Corby's total represented spirits (including PR spirits) outpaced the Canadian spirits market in value for the fourteenth consecutive quarter.

Corby's RTD² portfolio also continued to significantly outperform category trends, growing 22% in value in Q3 FY26 year-over-year, compared to 10% growth for the overall RTD category. Category growth continues to be driven by evolving consumer preferences and expanded distribution in Ontario.

On a rolling twelve-month basis ended March 31, 2026, Corby spirits portfolio delivered 3.1% value growth despite the industry declining 3.6% in value, while Corby RTDs²grew 32% year-over-year, significantly outperforming the market. This consistent short- and long-term outperformance reflects the strength of Corby's brand portfolio, impactful execution, and ability to navigate evolving retail and market dynamics.

QUARTERLY DIVIDEND

The Corby Board of Directors is pleased to declare a regular quarterly dividend of $0.24 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company. This dividend is payable on June 10, 2026, to shareholders of record as at the close of business on May 27, 2026. The Board of Directors assesses the dividend on a quarterly basis. Prior to this announcement, the quarterly dividend was last increased concurrently with the release of Q2 FY26 results.

QUARTERLY CONFERENCE CALL

Corby management will host a conference call on Friday, May 15, 2026, at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q3 and FYTD March 2026 periods. Corby welcomes stakeholders, investors, and other individual followers to access the conference call by dialing 1-437-900-0527 or toll free 1-888-510-2154 before the start of the call, or by joining via webcast at Corby Spirit and Wine Limited – Q3 Earnings Call. Following the conclusion of the call, a playback of the conference call will be available for 7 days by calling 289-819-1450 or 888-660-6345 and entering passcode 28750 #. A replay of the webcast will also be posted on Corby's website under the "Investors" section at www.corby.ca/investors.

1) NON-IFRS FINANCIAL MEASURES & RATIOS

In addition to using financial measures prescribed under IFRS, references are made in this news release to "Adjusted Earnings from Operations", "Adjusted Net Earnings", "Adjusted Basic Earnings per Share", "Adjusted Diluted Earnings per Share", "Organic Revenue", "Total Debt", "Net Debt", "Adjusted EBITDA" and "Dividend Payout Ratio" which are non-IFRS financial measures or ratios. Non-IFRS financial measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

Management believes the non-IFRS measures included in this news release are important supplemental measures of operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS financial measures.

Management believes that these measures allow for assessment of the Company's operating performance and financial condition on a basis that is more consistent and comparable between reporting periods.

Adjusted Earnings from Operations is equal to earnings from operations before interest and taxes for the period adjusted to remove the impact of the revised estimate of the contingency provision related to the LCBO pricing dispute, and costs incurred for business combination inventory fair value adjustments.

Adjusted EBITDA is equal to Adjusted Earnings from Operations adjusted to remove depreciation and amortization disclosed in Corby's financial statements.

Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the impact of the revised estimate of the contingency provision related to the LCBO pricing dispute, costs incurred for business combination inventory fair value adjustments, the notional interest charges related to the NCI obligation, and the fair value adjustments of the NCI obligation net of tax calculated using the effective tax rate.

Adjusted Basic Net Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.

Adjusted Diluted Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.

The following table presents a reconciliation of Adjusted Earnings from Operations, Adjusted EBITDA and Adjusted Net Earnings to their most directly comparable financial measures for the three-month and nine-month periods ended March 31, 2026, and 2025:


	Three months ended				Nine months ended
	Mar. 31,	Mar. 31,			Mar. 31,	Mar. 31,
(in millions of Canadian dollars)	2026	2025	$ Change	% Change	2026	2025	$ Change	% Change

Earnings from operations	$ 12.5	7.7	$ 4.9	63 %	$ 42.8	35.7	$ 7.1	20 %
Adjustments:
Fair value adjustment to inventory¹	-	-	-	n/a	-	0.6	(0.6)	(100 %)
Revised estimate for LCBO dispute²	(0.9)	-	(0.9)	n/a	(0.9)	-	(0.9)	n/a
Adjusted Earnings from operations	$ 11.6	7.7	$ 4.0	52 %	$ 41.9	36.3	$ 5.6	16 %

Adjusted for Depreciation and amortization	3.6	4.1	(0.5)	(12 %)	10.9	12.2	(1.3)	(10 %)
Adjusted EBITDA	$ 15.2	11.7	$ 3.5	30 %	$ 52.8	48.4	$ 4.4	9 %

Net earnings	$ 7.9	4.0	$ 3.9	97 %	$ 26.9	21.2	$ 5.7	27 %
Adjustments:
Fair value adjustment to inventory¹	-	-	-	n/a	-	0.4	(0.4)	(100 %)
Revised estimate for LCBO dispute²	(0.6)	-	(0.6)	n/a	(0.6)	-	(0.6)	n/a
NCI Obligation³	0.3	0.5	(0.2)	(42 %)	0.9	1.5	(0.6)	(42 %)
Fair value adjustment to NCI Obligation⁴	-	-	-	n/a	0.5	-	0.5	n/a
Adjusted Net earnings	$ 7.6	4.5	$ 3.1	67 %	$ 27.7	23.2	$ 4.5	20 %


⁽¹⁾ Costs related to fair value adjustments to inventory due to business combination
⁽²⁾Impact of revised estimate contingency provision related to LCBO dispute
⁽³⁾ Notional interest costs related to non-controlling interest obligation for ABG
⁽⁴⁾ Costs related to fair value adjustmenst to non-controlling interest obligation for ABG

	Three months ended				Nine months ended
	Mar. 31,	Mar. 31,	$ Change	% Change	Mar. 31,	Mar. 31,	$ Change	% Change
(in Canadian dollars)	2026	2025	$ Change	% Change	2026	2025	$ Change	% Change

Per common share
- Basic net earnings	$ 0.28	0.14	$ 0.14	97 %	$ 0.95	0.75	$ 0.20	27 %
- Diluted net earnings	0.28	0.14	$ 0.14	97 %	0.95	0.75	$ 0.20	27 %

Basic Net earnings per share	$ 0.28	0.14	$ 0.14	97 %	$ 0.95	0.75	$ 0.20	27 %
Adjustments:
Fair value adjustment to inventory¹	-	-	-	n/a	-	0.02	(0.02)	(100 %)
Revised estimate for LCBO dispute²	(0.02)	-	(0.02)	n/a	(0.02)	-	(0.02)	n/a
NCI Obligation³	0.01	0.02	(0.01)	(42 %)	0.03	0.05	(0.02)	(42 %)
Fair value adjustment to NCI Obligation⁴	-	-	-	n/a	0.02	-	0.02	n/a
Adjusted Basic Net earnings per share	$ 0.27	0.16	$ 0.11	67 %	$ 0.97	0.81	$ 0.16	20 %

Dilluted Net earnings per share	$ 0.28	0.14	$ 0.14	97 %	$ 0.95	0.75	$ 0.20	27 %
Adjustments:
Fair value adjustment to inventory¹	-	-	-	n/a	-	0.02	(0.02)	(100 %)
Revised estimate for LCBO dispute²	(0.02)	-	(0.02)	n/a	(0.02)	-	(0.02)	n/a
NCI Obligation³	0.01	0.02	(0.01)	(42 %)	0.03	0.05	(0.02)	(42 %)
Fair value adjustment to NCI Obligation⁴	-	-	-	n/a	0.02	-	0.02	n/a
Adjusted Dilluted Net earnings per share	$ 0.27	0.16	$ 0.11	67 %	$ 0.97	0.81	$ 0.16	20 %


⁽¹⁾ Costs related to fair value adjustments to inventory due to business combination
⁽²⁾Impact of revised estimate contingency provision related to LCBO dispute
⁽³⁾ Notional interest costs related to non-controlling interest obligation for ABG
⁽⁴⁾ Costs related to fair value adjustmenst to non-controlling interest obligation for ABG

The following table presents a reconciliation of Adjusted EBITDA to its most directly comparable financial measures for the three-month period ended March 31, 2026 to the three-month period ended June 30, 2024:

	Three months ended
	Mar. 31,	Dec. 31,	Sep. 30,	Jun. 30,	Mar. 31,	Dec. 31,	Sep. 30,	Jun. 30,
(in millions of Canadian dollars)	2026	2025	2025	2025	2025	2024	2024	2024

Earnings from operations	$ 12.5	13.8	16.4	10.4	7.7	13.0	15.0	8.7
Adjustments:
Transaction related costs¹	-	-	-	-	-	-	-	0.6
Portfolio rationalization costs²	-	(0.0)	0.0	0.8	-	-	-	-
Restructuring costs³	-	-	-	0.3	-	-	-	(0.3)
Fair value adjustment to inventory⁴	-	-	-	-	-	-	0.6	0.2
Revised estmate forLCBO dispute⁵	(0.9)	-	-	-	-	-	-	-
Adjusted Earnings from operations	$ 11.6	13.8	16.5	11.5	7.7	13.0	15.6	9.2
Adjusted for depreciation & amortization	3.6	3.5	3.8	4.1	4.1	4.1	3.9	4.1
Adjusted EBITDA	$ 15.2	17.3	20.3	15.6	11.7	17.2	19.5	13.3


⁽¹⁾ Costs related to the acquisitions of ABG and Nude Beverages brands
⁽²⁾ (Reversal of) Costs related to rationalizing brand portfolio, including costs incurred to dispose or discontinue product lines following strategic portfolio review
⁽³⁾ (Income) / costs related to organizational restructuring and provisions
⁽⁴⁾ Costs related to fair value adjustments to inventory due to business combination
⁽⁵⁾Impact of revised estimate contingency provision related to LCBO dispute

Organic revenue growth is measured as the difference between revenue excluding case goods revenue from acquired or disposed brands compared to revenue in the preceding fiscal period during which the acquisition or disposal had not yet occurred.

The following table presents a reconciliation of total organic revenue and organic case goods revenue to their most directly comparable financial measures for the three-month and nine-month periods ended March 31, 2026, and 2025:

	Three months ended				Nine months ended
	Mar. 31	Mar. 31	$ Change	% Change	Mar. 31	Mar. 31	$ Change	% Change
(in millions of Canadian dollars)	2026	2025⁽¹⁾	$ Change	% Change	2026	2025⁽¹⁾	$ Change	% Change

Case Goods - Domestic Revenue	$ 48.2	36.2	12.0	33 %	$ 163.0	137.8	25.2	18 %
Adjusted for revenue from acquired or disposed brands	-	(0.4)	0.4	(100 %)	(1.0)	(2.4)	1.4	(57 %)
Case Goods - Domestic Organic Revenue	$ 48.2	35.8	12.4	35 %	$ 161.9	135.3	26.6	20 %
Case Goods - International Revenue	3.3	4.2	(0.8)	(20 %)	13.0	11.2	1.8	17 %
Net commissions	6.0	6.8	(0.7)	(11 %)	22.0	22.9	(0.8)	(4 %)
Other services	0.7	0.9	(0.2)	(23 %)	2.5	3.0	(0.4)	(15 %)
Total Organic Revenue	$ 58.3	47.6	10.7	22 %	$ 199.5	172.3	27.2	16 %


⁽¹⁾ Certain comparative information has been reclassified to conform to the current year's presentation.

Total Debt refers to debt of the Company, which includes bank indebtedness and credit facilities payable, lease liabilities and long-term debt.

Net Debt refers to the cash and deposits in cash management pools of the Company, less bank indebtedness and credit facilities payable and long-term debt.

The following table presents a reconciliation of total debt and net debt to their most directly comparable financial measures as at March 31, 2026 and 2025:

	Mar. 31,	Mar. 31,
(in millions of Canadian dollars)	2026	2025

Bank indebtedness	$ (6.5)	$ (0.9)
Credit facilities payable	-	(1.9)
Lease liabilities	(9.0)	(3.7)
Long-term debt	(96.0)	(102.0)
Total debt	$ (111.5)	(108.5)

Cash	$ 0.6	-
Deposits in cash management pools	4.2	5.7

Bank indebtedness	(6.5)	(0.9)
Credit facilities payable	-	(1.9)
Long-term debt	(96.0)	(102.0)
Net debt	$ (97.7)	(99.1)

Dividend Payout Ratio refers to the Rolling 12-month Dividend Payout Ratio to the quarterly dividends paid and quarterly cash flow from operating activities:

	Twelve months ended
	Mar. 31,
(in millions of Canadian dollars except per share amounts)	2026

Dividend paid per share	$ 0.93
Shares outstanding	28,468,856
Total dividends paid	$ 26.5
Cash flow from operating activities	34.9
Dividend Payout Ratio	76 %

Please refer to the "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios" section of our MD&A for the three-month and nine-month periods ended March 31, 2026 as filed on SEDAR+ for further information regarding Non-IFRS measures.

2) RETAIL SALES DATA SCOPE

Please note that retail sales data for Nude Beverages in the province of Alberta is not reported consistently in ACD data across the current and comparative period, and as such, has been excluded from retail sales measures discussed in this document.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements, including statements concerning possible or assumed future results of Corby's operations. Forward-looking statements typically are preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. These statements are being provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes and are not guarantees of future performance. Although Corby believes that the forward-looking information in this press release is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information. For more information on the risks, uncertainties and assumptions that could cause Corby's actual results to differ from current expectations, refer to the Risks and Risk Management section of our Management's Discussion and Analysis for the three-month and nine-month periods ended March 31, 2026 as well as Corby's other public filings, available at https://www.sedarplus.ca and at https://corby.ca/en/investors/. Corby does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.

About Corby Spirit and Wine Limited

Corby Spirit and Wine Limited is a leading Canadian manufacturer, marketer and distributor of spirits and imported wines, and ready-to-drink beverages. 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, Cottage Springs® and Nude® ready-to-drink beverages and Foreign Affair® wines. Through its affiliation with Pernod Ricard S.A., a global leader in the spirits and wine industry, Corby 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 Código 1530® tequilas, Jefferson's™ and Rabbit Hole® bourbons, Kahlúa® liqueur, and Mumm® champagne. Corby also provides representation for certain selected, unrelated third-party brands such as Jacob's Creek®, Wyndham Estate®, Stoneleigh®, and Campo Viejo® 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.

SOURCE Corby Spirit and Wine Limited