Earnings release
Page 1
Corby Spirit and Wine Limited reports strong Q2 fiscal 2026 results and increases quarterly dividend by 4.3% to $0.24 per share TORONTO , Feb. 11, 2026 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: 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 second quarter ("Q2") and the six-month period ended December 31, 2025 ("H1"). Strong Q2 and record H1 results led by continued RTD business expansion (+28% and +37% in retail sales value year-over-year, respectively) and significant market share gains in spirits (outpacing the market +689bps year-over-year in Q2) Q2 Revenue of $66.9 million (+9% year-over-year) and Organic Revenue 1 +10% Record H1 Revenue at $142.3 million (+12%) and Organic Revenue 1 +13% Q2 Adjusted Net Earnings 1 at $9.1 million (+8%) (Reported +12%) H1 Adjusted Net Earnings 1 at $20.1 million (+8%) (Reported +11%) Quarterly Dividend declared of $0.24 per share, an increase of +4.3% FINANCIAL RESULTS Q2 FY26 results: Revenue for the second quarter of fiscal 2026 was $66.9 million , reflecting strong growth of $5.3 million or 9% compared to the same period last year. Organic revenue 1 , which excludes the contributions in both the current period and the comparable period from non-core brands disposed in the second quarter of fiscal 2026, saw very dynamic growth of 10% compared to the prior year period owing to the following drivers: Domestic case goods revenue of $53.4 million , up 12% compared to the prior year period. This growth was primarily led by the RTD business expansion following the route-to-market ("RTM") modernization in Ontario . In addition, Corby delivered value growth and market share gains in spirits, despite the spirits market declining on a year-over-year basis (see Market Trends section); Commissions of $7.8 million , reflecting a decline of 8% year-over-year, with a strong comparable period in Q2 FY25 that reflected pipeline fill in new channels. These impacts were partially offset by favourable LCBO ordering patterns; and Export case goods sales of $4.8 million , an increase of 25% compared to the prior year period, led by strong sales execution and renewed channel pipeline fill in strategic markets. In the second quarter of fiscal 2026, marketing, sales and administrative expenses remain broadly stable at $18.4 million (+1%), reflecting purposeful investments behind key brands and ongoing diligent cost management. Earnings from Operations and Adjusted Earnings from Operations 1 totaled $13.8 million in the second quarter of fiscal 2026, representing year-over-year growth of 6% for both metrics. Strong revenue growth and diligent cost management was partly offset by an RTD-skewed portfolio mix and channel mix impacts on gross margin. Adjusted EBITDA 1 for the second quarter of fiscal 2026 was $17.3 million , an increase of 1% 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 an unfavorable year–over–year impact on Adjusted EBITDA 1 . Net Earnings was $8.8 million and Adjusted Net Earnings 1 was $9.1 million in Q2 FY26, an increase of 12% and 8% year-over-year, respectively.
Page 2
H1 FY26 results: Revenue for the first half of fiscal 2026 totaled $142.3 million , an increase of $15.5 million or 12% compared to the same period last year, marking the highest H1 revenue reported in Corby's history. Excluding the impact from non-core disposed brands in both the current period and the comparable period, Corby delivered organic revenue 1 growth of $16.5 million or 13%. This performance was supported by excellent sales execution, continued RTD business expansion, and enhanced shelf visibility for owned and represented spirits amid provincial trade measures: Domestic case goods revenue of $113.7 million , up 14% year-over-year. Factors supporting the strong revenue performance included the continued expansion of the RTD business, supported by significant spirits market share gains, in part owing to the removal of US-origin products in key provinces, and the cycling of the LCBO labour strike impact last year; Commissions revenue was $16.0 million , reflecting a modest 1% year-over-year contraction, impacted by the represented wines portfolio lapping a higher comparison basis in H1 FY25 due to RTM modernization pipeline fill in that period; and Export revenue totaled $9.7 million , an increase of 38% year-over-year, driven by new channel pipeline fill in strategic markets, as well as a strong recovery of shipments to the US and innovation launches in the UK. Marketing, sales and administrative expenses were $38.5 million in the first half of fiscal 2026, an increase of $2.2 million , or 6% compared to the prior year period, significantly below Net Sales growth, reflecting ongoing diligent cost management. Those investments reflect continued support for the growing RTD business, brand-building initiatives, and strategic partnerships – notably the J.P. Wiser's multi-year Canadian partnership with the National Hockey League - while cycling a low comparison basis last year given the Ontario liquor board strike in that period. Earnings from Operations and Adjusted Earnings from Operations 1 totaled $30.3 million in the first half of fiscal 2026, increasing by 8% and 6% year-over-year, respectively. Strong revenue growth and diligent cost management was partly offset by an RTD-skewed portfolio mix and channel mix impacts on gross margin. Adjusted EBITDA 1 for the first half of fiscal 2026 was $37.6 million , an increase of 2% 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 an unfavorable year–over–year impact on Adjusted EBITDA 1 . Average annualized cash flows over the life of the agreements are expected to remain broadly consistent. Corby reported Net Earnings of $19.0 million and Adjusted Net Earnings 1 of $20.1 million in the first half of fiscal 2026, an increase of 11% and 8% year-over-year, respectively. The Company continued to generate strong cash flow in the first half of fiscal 2026, with Cash Flow from Operating Activities totaling $37.0 million , an increase of $1.5 million or 4% year-over-year. Corby closed Q2 FY26 with a Net Debt / Adjusted EBITDA 1 ratio (on a rolling 12-month basis) of 1.1x, an improvement over the prior quarter at 1.4x, illustrating the continued strengthening of its balance sheet. Corby recorded a dividend payout ratio 1 of 57% 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, "Corby delivered another strong quarter in Q2, further strengthening the momentum we have built in the first half of the fiscal year. Our record H1 revenue and continued earnings growth attest to the strength and balance of our diversified portfolio, the ongoing success of our RTD expansion, and the disciplined commercial execution of our teams across the country. In a volatile and declining market environment, our team has responded with tenacity and resilience to capture significant incremental market share in both spirits and RTDs, highlighting the relevance of our strategy, the power of our partnerships, and Corby's ability to deliver strong performance irrespective of the market backdrop. I am inspired by the strong foundation the organization has built and the results delivered. Looking ahead, our focus remains clear: to continue outperforming the market in a sustainable and profitable manner. We will achieve this through focused and diligent investments in our core brands, further accelerating our RTD
Page 3
business expansion, and unlocking new opportunities as the Canadian retail and regulatory landscape evolve, while remaining disciplined on costs. Signaling our continued confidence in the outlook ahead, the Board has approved an increase in our dividend this quarter of approximately 4%, our third announced dividend increase in less than 18 months. I sincerely thank our employees, customers, and partners for their trust and dedication. Their unwavering commitment positions Corby uniquely to continue navigating industry complexity with agility, while building on our strong track-record of creating sustainable 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 six-month periods ended December 31, 2025 , prepared in accordance with IFRS Accounting Standards, available on www.sedarplus.ca and www.corby.ca/investors . MARKET TRENDS In Q2 FY26, Corby delivered exceptional results in a weaker market impacted by changes in the beverage alcohol landscape in Ontario , further compounded by the British Columbia General Employees' Union (BCGEU) labour strike. While the overall spirits category declined 4% in value relative to the comparable period last year, Corby's spirits retail sales achieved value growth of 2%. Corby's total represented spirits (including PR spirits) have now outperformed the Canadian spirits market in value for thirteen consecutive quarters. Corby RTDs 2 increased 28% in value in Q2 FY26 compared to the same quarter last year, significantly outperforming the overall RTD 2 category, which grew 11% in value, as the category continues to be shaped by evolving consumer preferences and expanded distribution points in Ontario . In the last twelve months ended December 31, 2025 , Corby spirits posted 2% value growth year-over-year in a spirits market that declined 4%, and Corby RTDs 2 were dynamic, increasing 28% in value year-over- year, also significantly outpacing the RTD market, which grew 12% year-over-year. This outperformance reflects the strength of Corby's diversified product portfolio, local brand resonance, excellent sales execution and continued innovation success as well as its sustained ability to successfully navigate a shifting retail landscape and ongoing supply and labour disruptions coast-to-coast. 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, an increase of $0.01 , or +4.3% from the previous quarterly dividend of $0.23 per share. This dividend is payable on March 11, 2026, to shareholders of record as at the close of business on February 25, 2026 . The Board of Directors assesses the dividend on a quarterly basis. Previous to this announcement, the quarterly dividend was last increased concurrent with the release of Q2 FY25 results. QUARTERLY CONFERENCE CALL Corby management will host a conference call on Thursday, February 12, 2026 , at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q2 and H1 FY26 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 – Q2 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 61911 #. 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.
Page 4
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 portfolio rationalization costs, 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 portfolio rationalization costs, 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 six- month periods ended December 31, 2025 , and 2024: Three months ended Six months ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, (in millions of Canadian dollars) 2025 2024 $ Change % Change 2025 2024 $ Change % Change Earnings from operations $ 13.8 $ 13.0 $ 0.8 6 % $ 30.3 $ 28.0 $ 2.2 8 % Adjustments: Portfolio rationalization costs 1 (0.0) - (0.0) n/a - - - n/a Fair value adjustment to inventory 2 - - - n/a - 0.6 (0.6) (100 %) Adjusted Earnings from operations $ 13.8 $ 13.0 $ 0.8 6 % $ 30.3 $ 28.6 $ 1.6 6 % Adjusted for Depreciation and amortization 3.5 4.1 (0.7) (16 %) 7.3 8.1 (0.8) (10 %) Adjusted EBITDA $ 17.3 $ 17.2 $ 0.1 1 % $ 37.6 $ 36.7 $ 0.9 2 % Net earnings $ 8.8 $ 7.9 $ 0.9 12 % $ 19.0 $ 17.2 $ 1.8 11 % Adjustments: Portfolio rationalization costs 1 (0.0) - (0.0) n/a - - - n/a Fair value adjustment to inventory 2 - - - n/a - 0.4 (0.4) (100 %) NCI Obligation 3 0.3 0.5 (0.2) (42 %) 0.6 1.0 (0.4) (42 %) Fair value adjustment to NCI Obligation 4 - - - n/a 0.5 - 0.5 n/a Adjusted Net earnings $ 9.1 $ 8.4 $ 0.7 8 % $ 20.1 $ 18.6 $ 1.5 8 % Three months ended Six months ended Dec. 31, Dec. 31, $ Change % Change Dec. 31, Dec. 31, $ Change % Change (in Canadian dollars) 2025 2024 2025 2024 Per common share - Basic net earnings $ 0.31 $ 0.28 $ 0.03 12 % $ 0.67 $ 0.60 $ 0.06 11 % - Diluted net earnings $ 0.31 $ 0.28 $ 0.03 12 % $ 0.67 $ 0.60 $ 0.06 11 % Basic Net earnings per share $ 0.31 $ 0.28 $ 0.03 12 % $ 0.67 $ 0.60 $ 0.06 11 % Adjustments:
Page 5
Portfolio rationalization costs 1 (0.00) - (0.00) n/a - - - n/a Fair value adjustment to inventory 2 - - - n/a - 0.02 (0.02) (100 %) NCI obligation 3 0.01 0.02 (0.01) (42 %) 0.02 0.04 (0.01) (42 %) Fair value adjustment to NCI obligation 4 - - - n/a 0.02 - 0.02 n/a Adjusted Basic Net earnings per share $ 0.32 $ 0.30 $ 0.02 8 % $ 0.71 $ 0.66 $ 0.05 8 % Dilluted Net earnings per share $ 0.31 $ 0.28 $ 0.03 12 % $ 0.67 $ 0.60 $ 0.06 11 % Adjustments: Portfolio rationalization costs 1 (0.00) - (0.00) n/a - - - n/a Fair value adjustment to inventory 2 - - - n/a - 0.02 (0.02) (100 %) NCI obligation 3 0.01 0.02 (0.01) (42 %) 0.02 0.04 (0.01) (42 %) Fair value adjustment to NCI obligation 4 - - - n/a 0.02 - 0.02 n/a Adjusted Dilluted Net earnings per share $ 0.32 $ 0.30 $ 0.02 8 % $ 0.71 $ 0.66 $ 0.05 8 % (1) Costs related to rationalizing brand portfolio, including costs incurred to dispose or discontinue product lines following strategic portfolio review (2) Costs related to fair value adjustments to inventory due to business combination (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 December 31, 2025 to the three-month period ended March 31, 2024 : Three months ended Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, (in millions of Canadian dollars) 2025 2025 2025 2025 2024 2024 2024 2024 Earnings from operations $ 13.8 $ 16.4 $ 10.4 $ 7.7 $ 13.0 $ 15.0 $ 8.7 $ 9.2 Adjustments: Transaction related costs 1 - - - - - - 0.6 - Portfolio rationalization costs 2 (0.0) 0.0 0.8 - - - - - Restructuring costs 3 - - 0.3 - - - (0.3) - Fair value adjustment to inventory 4 - - - - - 0.6 0.2 - Adjusted Earnings from operations $ 13.8 $ 16.5 $ 11.5 $ 7.7 $ 13.0 $ 15.6 $ 9.2 $ 9.2 Adjusted for depreciation & amortization 3.5 3.8 4.1 4.1 4.1 3.9 4.1 3.8 Adjusted EBITDA $ 17.3 $ 20.3 $ 15.6 $ 11.7 $ 17.2 $ 19.5 $ 13.3 $ 13.0 (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 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 six-month periods ended December 31, 2025 , and 2024: Three months ended Six months ended (in millions of Canadian dollars) Dec. 31 2025 Dec. 31 2024 (1) $ Change % Change Dec. 31 2025 Dec. 31 2024 (1) $ Change % Change Case Goods - Domestic Revenue $ 53.4 $ 48.2 $ 5.2 11 % $ 114.8 $ 101.6 $ 13.2 13 % Adjusted for revenue from acquired or disposed brands (0.0) (0.8) 0.7 (94 %) (1.0) (2.0) 1.0 (49 %) Case Goods - Domestic Organic Revenue $ 53.4 $ 47.4 $ 5.9 12 % $ 113.7 $ 99.5 $ 14.2 14 % Case Goods - International Revenue 4.8 3.8 0.9 25 % 9.7 7.0 2.7 38 % Net commissions 7.8 8.4 (0.7) (8 %) 16.0 16.1 (0.1) (1 %) Other services 0.9 1.2 (0.2) (21 %) 1.9 2.1 (0.2) (12 %) Total Organic Revenue $ 66.9 $ 60.9 $ 6.0 10 % $ 141.3 $ 124.7 $ 16.5 13 % (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
Page 6
financial measures as at December 31, 2025 and 2024: Dec. 31, Dec. 31, (in millions of Canadian dollars) 2025 2024 Credit facilities payable $ - $ (2.2) Lease liabilities (7.6) (4.1) Long-term debt (96.0) (108.0) Total debt $ (103.6) $ (114.3) Cash $ 2.1 $ 1.4 Deposits in cash management pools 21.8 24.0 Credit facilities payable - (2.2) Long-term debt (96.0) (108.0) Net debt $ (72.1) $ (84.8) 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 Dec. 31, (in millions of Canadian dollars except per share amounts) 2025 Dividend paid per share $ 0.92 Shares outstanding 28,468,856 Total dividends paid $ 26.2 Cash flow from operating activities 46.2 Dividend Payout Ratio 57 % Please refer to the "Non-IFRS Financial Measures" & "Non-IFRS Financial Ratios" section of our MD&A for the three-month and six-month periods ended December 31, 2025 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 six-month periods ended December 31, 2025 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
Page 7
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 . www.Corby.ca SOURCE Corby Spirit and Wine Limited View original content: http://www.newswire.ca/en/releases/archive/February2026/11/c0097.html %SEDAR: 00001138E For further information: For more information, please contact: CORBY SPIRIT AND WINE LIMITED, Juan Alonso, Vice-President and Chief Financial Officer, investors.corby@pernod-ricard.com CO: Corby Spirit and Wine Limited CNW 16:15e 11-FEB-26