Strong Q1 performance reflecting continued RTD business expansion and spirits' market share acceleration
Record Quarterly Revenue in Q1 of $75.4 million (+16% year-over-year)
Record Quarterly Adjusted EBITDA1 in Q1 of $20.3 million (+4%)
Adjusted Net Earnings1 in Q1 of $11.0 million (+8%) (Reported +9%)
Quarterly Dividend declared of $0.23 per share
FINANCIAL RESULTS
Revenue for the first quarter of fiscal 2026 totaled $75.4 million, an increase of $10.3 million or 16% compared to the same period last year, while representing the highest quarterly revenue reported in Corby's history. Growth was entirely organic and was driven by strong sales execution, while also benefitting from enhanced shelf visibility for owned and represented spirits and provincial trade measures.
Domestic case goods revenue was $61.3 million, up 15% year-over-year. Growth was supported by the continued expansion of the RTD business, higher spirits market share following the removal of US-origin products in key provinces, and the cycling of the LCBO labour strike impact last year.
Commissions revenue was $8.2 million, a 7% increase year-over-year, reflecting momentum in represented brands, favorable LCBO ordering patterns and the same items benefiting domestic case goods revenue cited above.
Export revenue totaled $4.9 million, an increase of 55%, driven by a strong recovery of shipments to the US and the UK.
Marketing, sales and administrative expenses were $20.1 million in Q1 FY26, an increase of $1.9 million, or 11% compared to the prior year period. These expenses grew more modestly than revenue in the current period, reflecting ongoing diligent cost management. The increase primarily reflects continued support for the growing RTD business, brand-building initiatives, and strategic investments, notably the J.P. Wiser's multi-year Canadian partnership with the National Hockey League, while also cycling a very low comparison basis last year with the Ontario liquor board strike.
Adjusted EBITDA1 totaled $20.3 million in Q1 FY26, up 4% year-over-year and representing the highest Adjusted EBITDA reported in Corby's history. Corby reported Net Earnings of $10.2 million and Adjusted Net Earnings1 of $11.0 million in the first quarter of fiscal 2026, increasing by 9% and 8% year-over-year, respectively, versus the prior year period. The growth in these earnings metrics primarily reflects the record quarterly revenue in the period, as outlined above.
The Company continued to generate strong cash flow during the quarter, with Cash Flow from Operating Activities of $5.6 million, an increase of $1.9 million or 53% year-over-year. Corby maintained a Net Debt / Adjusted EBITDA1 ratio at 1.4x at the end of Q1 FY26, consistent with Q4 FY25, reflecting ongoing balance sheet strength with significant financial flexibility. Corby recorded a dividend payout ratio1 of 55% over the last four quarters, underscoring the sustainability of its shareholder return policy as part of its balanced capital allocation strategy.
Corby's President and Chief Executive Officer, Nicolas Krantz, stated,
"Corby delivered a strong start to the fiscal year, underpinned by an acceleration in market share gains in spirits and continued robust growth in RTDs, contributing to record quarterly performance. This quarter's double-digit top line growth reflected the continued success of our sales strategy, supporting continued growth in our earnings and cash flow generation. However, revenue also benefitted from a low comparative base and favourable order phasing, which alongside the impact of the BCGEU public service workers' strike (including government run liquor stores) in October, is anticipated to lead to a comparatively softer second quarter. We anticipate that these various puts and takes will ultimately normalize over time, with our results on a full-year basis expected to be emblematic of the continued focused execution of our market-leading strategy.
Looking ahead, as Corby transitions to new leadership, our ambition remains clear: to consistently outpace the market in a sustainable and profitable way, while creating long-term value for our shareholders. I am confident that Corby is well positioned to achieve this, thanks to the dedication of our teams, the strength of our customer partnerships, and our consumer-centric approach that keeps us attuned to evolving preferences and market trends. I want to express my heartfelt thanks to all Corby employees, customers, partners, and consumers for their continued trust and support."
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 period ended September 30, 2025, prepared in accordance with International Financial Reporting Standards, available on www.sedarplus.ca and www.corby.ca/investors.
MARKET TRENDS
In Q1 FY26, Corby delivered standout performance in a market that remained challenging despite the cycling of the LCBO labour strike in July 2024. While the overall spirits category declined 0.9% in value compared to the same quarter last year, Corby's retail sales value grew 5.9% year-over-year, driven by strong sales execution across both owned and represented brands. Growth was further supported by the removal of US-origin spirits in key provinces following the implementation of increased U.S. tariffs on Canada earlier in the calendar year.
Corby's ready-to-drink (RTD) portfolio (excluding Nude beverages2) surged 44% year-over-year in value through Q1 FY26, largely benefiting from the post-LCBO labour strike recovery. This growth significantly outpaced the overall RTD category, which grew 16% in value, amid in a landscape shaped by expanding RTD distribution points in Ontario.
For the latest twelve months ended September 30, 2025, Corby's total owned and represented spirits demonstrated resilience, increasing by 0.5% in value year-over-year, outperforming the broader spirits category, which declined 3.8%. Over the same period, Corby RTDs2 grew 26% in value, comfortably outpacing the 13% growth recorded by the total RTD category.
Corby's total owned and represented spirits have now outperformed the Canadian spirits market in value for twelve consecutive quarters, underscoring the strength of its diversified product portfolio, the appeal of its local brands, and the success of its innovation and sales execution strategies.
QUARTERLY DIVIDEND
The Corby Board of Directors is pleased to declare a dividend of $0.23 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company, consistent with the amount of the last dividend payment. This dividend is payable on December 19, 2025 to shareholders of record as at the close of business on November 28, 2025. The Board of Directors assesses the dividend on a quarterly basis. 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 Friday, November 14, 2025, at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q1 period. 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, Q1 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 56280 #. 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", "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 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 period ended September 30, 2025, and 2024:
Three months ended
Sep. 30,
Sep. 30,
(in millions of Canadian dollars)
2025
2024
$ Change
% Change
Earnings from operations
$ 16.4
15.0
$ 1.4
10 %
Adjustments:
Portfolio rationalization costs1
0.0
-
0.0
n.a.
Fair value adjustment to inventory2
-
0.6
(0.6)
(100 %)
Adjusted Earnings from operations
$ 16.5
15.6
$ 0.9
6 %
