Financial Highlights

Corby’s financial results reflect our focused efforts to drive value growth ahead of volume, enabling us to invest in our brands and position ourselves for long-term growth and success.

We were pleased with the results achieved while implementing key strategic initiatives for sustainable long-term growth. Recent additions of the Ungava Spirits brands and the Foreign Affair winery played nicely into our refocused product portfolio. Key battlegrounds, such as Canadian whisky and gin, remained strong. Our brands are well positioned for the next fiscal year with outstanding marketing and sales initiatives planned. With our resources refocused on new routes to market, our brands are also well positioned for growth in international markets. We look forward to capitalizing on the momentum built in fiscal 2019.

Revenue

(in millions of Canadian dollars)

143.21
2017
145.71
2018
149.9
2019

Revenue growth was primarily attributable to the performance of Corby’s owned-brand domestic performance as well as increased commission income.

Net Earnings

(in millions of Canadian dollars)

25.6
2017
25.7
2018
25.7
2019

Net earnings remained relatively stable, as Corby increased its marketing investment in strategic brand equity building activities to drive long-term sustainable value growth.

Cash Flow From Operating Activities

(in millions of Canadian dollars)

27.8
2017
31.3
2018
34.0
2019

Strong profit conversion to cash continued. Fluctuations in working capital balances related to the timing of spend helped increase net cash from operating activities.

2019 Summary

As at and for the years ended June 30, 2019 and 2018 (in thousands of Canadian dollars, except per share amounts)

Results 2019 20181
Revenue 149,938 145,724
Earnings from operations 34,208 34,943
Earnings before income taxes 35,222 35,366
Net earnings 25,694 25,681
Cash flow from operating activities 34,000 31,307
Financial Position
Working capital 121,875 131,324
Total assets 218,331 230,035
Shareholders’ equity 169,097 184,694
Per Common Share
Earnings from operations 1.20 1.23
Net earnings 0.90 0.90
Dividends declared and paid 1.32 0.87
Shareholders’ equity 5.94 6.49
Financial Ratios
Working capital 4.6 5.0
Return on average shareholders’ equity 14.5 14.2
Pre-tax return on average capital employed 19.7 19.4

Revenue From Corby-Owned Brands*

(in millions of Canadian dollars)

114.11
2017
115.91
2018
119.4
2019

Increase in revenue was due to the performance of J.P. Wiser’s and the Ungava Spirits brands, the addition of Foreign Affair brands and the launch of new innovations.

* Revenue from Corby-owned brands represents Case Goods sales of Corby products in Canada and international markets.

Margin Quality*

56%
2017
55%
2018
54%
2019

Gross margin of 54% was affected by other ancillary costs, including freight and distribution.

* Gross margin from Case Goods and other services (excludes commissions).

Earnings per Share

(in Canadian dollars)

0.90
2017
0.90
2018
0.90
2019

Year-on-year evolution reflects strong top-line performance that enabled reinvestment in key strategic initiatives.

Dividends per Share Declared and Paid

(in Canadian dollars)

0.82
2017
0.87
2018
1.32
2019

Special dividend of $0.44 per share declared and paid during fiscal 2019.

With our brands well positioned for the next fiscal year, we look forward to capitalizing on the momentum built in 2019.
– Edward Mayle, Vice-President, Chief Financial Officer

1. Comparative figures for 2017 and 2018 have been restated to reflect the company’s retrospective application of IFRS 15, “Revenue from Contracts with Customers”.