Financial Highlights
Corby’s financial results reflect our portfolio prioritization and our focus on revitalizing our owned-brands by investing in innovation and premiumization.
We were particularly pleased with how quickly Ungava Spirits brands were incorporated into the Corby family and contributed to top-line growth. Also of note, our whisky brands maintained their strong momentum: J.P. Wiser’s whisky returned to market share growth and delivered healthy increases in both volume and value, while our premium craft Canadian whiskies won awards and recognition in Canadian and international markets.
Revenue
(in millions of Canadian dollars)
| 15 | 132.1 |
| 16 | 140.0 |
| 17 | 143.9 |
Revenue growth was primarily attributable to the performance of the newly acquired Ungava Spirits brands.
Net Earnings
(in millions of Canadian dollars)
| 15 | 20.4 |
| 16 | 25.4 |
| 17 | 25.6 |
Net earnings were largely driven by solid growth in commissions on sales of Pernod Ricard brands and reduced advertising and promotional investment in the US market.
Cash Flow from Operating Activities
(in millions of Canadian dollars)
| 15 | 27.1 |
| 16 | 33.3 |
| 17 | 27.8 |
Increased tax payments in the current year lowered net cash from operating activities. Strong profit conversion to cash continued. Year-over-year comparatives were affected by a tax refund received in fiscal 2016.
2017 Summary
| As at and for the years ended June 30, 2017 and 2016 (in thousands of Canadian dollars, except per share amounts) |
2017 | 2016 |
|---|---|---|
| Results | ||
| Revenue | $ 143,869 | $ 140,002 |
| Earnings from operations | 35,057 | 34,623 |
| Earnings before income taxes | 34,955 | 34,764 |
| Net earnings | 25,634 | 25,435 |
| Cash flow from operating activities | 27,834 | 33,264 |
| Financial Position | ||
| Working capital | $132,738 | $136,647 |
| Total assets | 227,822 | 228,503 |
| Shareholders’ equity | 177,278 | 170,785 |
| Per Common Share | ||
| Earnings from operations | $1.23 | $1.22 |
| Net earnings | 0.90 | 0.89 |
| Dividends declared and paid | 0.82 | 1.38 |
| Shareholders’ equity | 6.23 | 6.00 |
| Financial Ratios | ||
| Working capital | 5.1 | 5.1 |
| Return on average shareholders’ equity | 14.7 | 14.2 |
| Pre-tax return on average capital employed | 20.1 | 19.5 |
Revenue from Corby-Owned Brands1
(in millions of Canadian dollars)
| 15 | 111.7 |
| 16 | 111.1 |
| 17 | 114.8 |
Performance of the newly acquired Ungava Spirits brands helped offset declines in US Case Goods shipments resulting from a change in our export strategy.
Margin Quality2
| 15 | 58% |
| 16 | 58% |
| 17 | 56% |
Gross margin of 56% was affected by foreign exchange in our Lamb’s UK business and domestically by an unfavourable provincial mix.
Earnings per Share
| 15 | 0.72 |
| 16 | 0.89 |
| 17 | 0.90 |
Year-on-year evolution reflects investment in newly acquired brands, J.P. Wiser’s products and one-off acquisition costs.
- Revenue from Corby-owned brands represents Case Goods sales of Corby products in Canada and international markets.
- Gross margin from Case Goods and other services (excludes commissions).
Dividend Yield
3.7%
Maintained a high regular dividend yield on Corby’s Voting Class A Common Shares
(as at June 30, 2017)
“Corby continued to build competitive advantage aimed at delivering sustainable long-term value growth.”
– Antonio Sánchez
Vice-President & Chief Financial Officer