Corby Posts C$18.9 Million in Adjusted Operating Earnings in First Quarter
Key Facts
Corby Spirit and Wine reported results for the first quarter of fiscal 2027, ended September 30, 2026, posting adjusted operating earnings of C$18.9 million, up 15% year over year. Reported operating earnings were C$35.9 million, compared with C$16.4 million in the year-earlier period, an increase of 118%. The company attributed the reported jump to a net gain of C$18.2 million from the sale of the Lamb’s brand during the quarter. It could not be verified that the results exceeded analysts’ estimates for this release. The company also declared a quarterly distribution of C$0.25 per share, the same amount as the previous distribution.
Organic revenue was C$70.1 million, up 1% from a year earlier, while reported revenue fell to C$72.5 million, down 4%. Corby said the sale of the Lamb’s brand during the quarter was the main reason for the decline in reported revenue. Organic revenue growth followed strong growth of 16% in the first quarter of the previous fiscal year, raising the comparison base. Adjusted diluted earnings per share rose to C$0.46 from C$0.39, an increase of 18%. Reported diluted earnings per share were C$0.97, compared with C$0.36 a year earlier, an increase of 171%.
Adjusted EBITDA rose 10% to C$22.2 million, and adjusted net income increased 18% to C$13.0 million. Reported net income was C$27.6 million, up 171% year over year. The gap between reported and adjusted earnings growth is consistent with the effect of the Lamb’s sale gain, which lifted reported operating earnings. After excluding that gain and adding one-time restructuring costs, adjusted operating earnings growth was 15%. The adjusted measures therefore reflected an operational improvement smaller than the jump shown by reported earnings.
Organic domestic goods revenue was C$58.8 million, up 3%, with ready-to-drink brands continuing to grow. The company said pricing gains from changes to price margins in Ontario and Alberta supported those brands. Commission revenue rose 10% to C$9.0 million. By contrast, organic export revenue fell 44% to C$1.4 million. Corby attributed the decline to the distribution transition in the United States and unfavorable order timing in Sweden and Turkey. Chief Executive Florence Trusario said growth in ready-to-drink brands offset weaker spirits performance.
Gross margin rose 374 basis points to 52%, benefiting, according to the company, from pricing gains in ready-to-drink brands, supply-chain efficiencies and higher commission income. Selling, marketing and administrative expenses were C$20.1 million, unchanged from the same period a year earlier. Corby said the expenses included one-time restructuring costs. Cash flow from operating activities was C$7.4 million, up 32% year over year. The net-debt-to-adjusted-EBITDA ratio also improved to 0.6 times at quarter-end. The company recorded a payout ratio of operating cash flow of 70% for the four quarters ended September 30, 2026.
The board maintained the distribution at C$0.25 per share for both Class A and Class B non-voting shares, the same amount the company paid in the previous distribution. The distribution is payable on December 18, 2026, to shareholders of record at the close of business on November 27, 2026. Trusario said the spirits market is likely to remain uncertain and volatile for the foreseeable future. She added that this is particularly tied to the possibility of U.S. products returning to store shelves. Corby management was scheduled to hold a call to discuss the financial and operating results on November 13, 2026, at 9:00 a.m. Eastern Time.