Corby Spirit and Wine TSE: CSW.A reported record fiscal year-to-date revenue through March 31, 2026, as growth in ready-to-drink beverages and market share gains in spirits helped offset softer industry conditions and lower commission income.
President and Chief Executive Officer Florence Tresarrieu said the company delivered “a strong fiscal year-to-date performance,” with reported revenue up 15% and organic revenue up 16% for the first nine months of fiscal 2026. She said the results were driven by sustained momentum in Corby’s ready-to-drink, or RTD, business, continued spirits share gains and favorable order timing from the Liquor Control Board of Ontario in the third quarter.
“At retail, we outpaced the spirits market in value for the 14th consecutive quarter,” Tresarrieu said, adding that the performance reflected portfolio-wide execution rather than reliance on a single brand or channel.
Third-quarter revenue rises 21%
Vice President and Chief Financial Officer Juan Alonso said Corby generated CAD 58.3 million in third-quarter revenue, up 21% from the same period last year. Organic revenue growth was 22% when excluding the impact of disposed brands.
Adjusted earnings from operations rose 52% to CAD 11.6 million, while reported earnings from operations increased 63%. Adjusted earnings per share were CAD 0.27, up 67%, and reported earnings per share were CAD 0.28, up 97%.
Alonso said the quarter benefited from RTD expansion, spirits market share gains and favorable LCBO ordering ahead of the retailer’s ERP system upgrade. He also said earnings growth outpaced revenue growth because of disciplined cost management.
Domestic case goods represented 83% of third-quarter net sales and reached CAD 48.2 million, up 33% on a reported basis and 35% organically. During the question-and-answer portion of the call, Alonso said the domestic case goods increase was mainly driven by RTD revenue growth of 56% in the quarter, while domestic spirits grew 21%.
Total commission revenue declined 11% to CAD 6 million, representing 10% of third-quarter net sales, as represented wines lapped a strong comparison period. Export revenue fell 20% to CAD 3.3 million, reflecting unfavorable shipment timing after a strong first half and comparison against U.S. pipeline fill last year ahead of tariffs.
RTD business becomes larger part of portfolio
Tresarrieu said RTD now represents approximately 38% of Corby’s revenue and has become one of the company’s most significant growth engines. She said Corby’s RTD strategy has expanded distribution from about 1,000 points of sale to more than 7,000.
Over the last 12 months, Corby’s RTD portfolio delivered 32% value growth, Tresarrieu said, adding that the company gained RTD share in every region over the last three months. She cited Ontario route-to-market modernization, grocery and emerging channels, and growth in Western Canada as important drivers.
Corby also increased its ownership of ABG to 95% and exited non-core RTD and beer brands, which Tresarrieu said streamlined the business and sharpened ABG’s growth profile.
In response to a shareholder question about consumer demand for RTD products, Tresarrieu said the category is benefiting from convenience, price points and variety. She described RTD products as “a quality cocktail in a can” and said the diversity of offerings has contributed to consumer interest.
Market share gains continue despite soft spirits market
Tresarrieu said Corby continued to capture market share in the quarter, including benefits from the removal of U.S.-origin products from shelves. For the rolling three-month period ended March 31, she said the Canadian spirits market declined 4.2%, while Corby was flat in value, representing a 4.2 percentage-point outperformance. In RTD, the category grew almost 10%, while Corby grew 22.4%. Corby’s wine portfolio grew 12% against a market decline of 0.4%.
On a rolling 12-month basis, Corby’s spirits business grew 3.1% while the Canadian spirits market declined 3.6%, according to Tresarrieu. She said Corby was also delivering growth in categories such as vodka and rum, supported by shelf presence after U.S.-origin products were removed, and continued to lead in Irish whiskey. Tequila remained a growth engine, delivering double-digit growth.
Year-to-date results set company revenue record
For the first nine months of fiscal 2026, Corby generated CAD 200.6 million in revenue, up 15% on a reported basis and 16% organically. Adjusted earnings from operations rose 16% to CAD 41.9 million, while reported earnings from operations increased 20% to CAD 42.8 million.
Adjusted earnings per share were CAD 0.97, up 20%, and reported earnings per share were CAD 0.95, up 27%. Alonso said total operating expenses increased 14% to support RTD growth and strategic investments behind spirits brands, including Wiser’s NHL and Wiser’s Canada Dry partnerships.
Year-to-date domestic case goods revenue reached CAD 163 million, up 18% reported and 20% organically. Commission revenue was CAD 22 million, down 4%, while export revenue increased 17% to CAD 13 million, driven by shipment expansion into Turkey and Eastern Europe and value conversion of Lamb’s in the U.K.
Cash flow declines, dividend maintained
Corby used CAD 17.6 million in cash from operating activities during the third quarter, CAD 11.3 million more than in the prior-year quarter. Alonso attributed the use of cash to higher working capital needs, including LCBO order anticipation and RTD inventory build ahead of the summer.
For the first nine months, cash from operating activities totaled CAD 19.4 million, down CAD 9.8 million from last year. Net debt to adjusted EBITDA improved to 1.4 times from 1.6 times at the end of the prior-year third quarter. Corby reduced debt to CAD 97.8 million after loan repayment, Alonso said.
The board declared a quarterly dividend of CAD 0.24 per share, consistent with the prior quarter and up CAD 0.01, or 4%, from the same quarter last year. Total dividends declared for the first three quarters were CAD 0.71 per share, up 4% from fiscal 2025.
Looking ahead, Alonso said Corby expects the fourth quarter to be “significantly softer” as LCBO ordering patterns normalize and spirits market declines persist. However, he said the company remains on track to deliver high-single-digit revenue growth for fiscal 2026 and reach a record annual revenue level, supported by RTD expansion and strength in the Canadian portfolio amid ongoing provincial trade measures.
About Corby Spirit and Wine TSE: CSW.A
Corby Spirit and Wine Ltd is a Canadian manufacturer, marketer and importer of spirits and wines. The company derives its revenues from the sale of its owned-brands in Canada and other international markets, as well as earning commissions from the representation of selected non-owned brands in the Canadian marketplace. The company also supplements these primary sources of revenue with other ancillary activities incidental to its core business, such as logistics fees. The company has two reportable segments: Case Goods and Commissions.
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