2018 Annual Report

Financial Highlights

Corby’s financial results reflect the success of our strategic acquisitions, our increasing ability to compete in faster-growing segments with more premium offerings, and the opening of new routes to market such as the Québec grocery wine channel.

Among the year’s highlights, we were especially pleased with the strong top-line results delivered by our strategic acquisitions of the Ungava Spirits brands and Foreign Affair wines. In addition, our focus on revitalizing our owned-brands in domestic and international markets began to pay off, and our whisky brands maintained their momentum, outperforming the Canadian whisky category and delivering strong results in export markets.


(in millions of Canadian dollars)

16 140.0
17 143.9
18 146.6

Revenue growth was primarily attributable to the performance of the Ungava Spirits brands and the addition of the Foreign Affair brands (acquired October 2, 2017).

Net Earnings

(in millions of Canadian dollars)

16 25.4
17 25.6
18 25.7

Net earnings remained relatively stable, driven largely by robust export market results and the strong performance of the Pernod Ricard brands.

Cash Flow from Operating Activities

(in millions of Canadian dollars)

16 33.3
17 27.8
18 31.3

Strong profit conversion to cash continued. Decreased tax payments in the current year helped increase net cash from operating activities.

2018 Summary

As at and for the years ended June 30, 2018 and 2017
(in thousands of Canadian dollars, except per share amounts)

Results 2018 2017
Revenue $ 146,595 $ 143,869
Earnings from operations 34,943 35,057
Earnings before income taxes 35,366 34,955
Net earnings 25,681 25,634
Cash flow from operating activities 31,307 27,834
Financial Position
Working capital $ 131,324 $ 132,738
Total assets 230,035 227,822
Shareholders’ equity 184,694 177,278
Per Common Share
Earnings from operations $1.23 $1.23
Net earnings 0.90 0.90
Dividends declared and paid 0.87 0.82
Shareholders’ equity 6.49 6.23
Financial Ratios
Working capital 5.0 5.1
Return on average shareholders’ equity 14.2 14.7
Pre-tax return on average capital employed 19.4 20.1

Revenue from Corby-Owned Brands*

(in millions of Canadian dollars)

16 111.1
17 114.8
18 116.8

The revenue increase was due to the strong performance of the Ungava Spirits brands, the addition of the Foreign Affair brands, and export market success.

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

Margin Quality*

16 58%
17 56%
18 55%

Gross margin was affected by the higher input costs of the premium Ungava Spirits brands.

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

Earnings per Share

(in Canadian dollars)

16 0.89
17 0.90
18 0.90

Year-on-year evolution reflected one-off acquisition costs.

Antonio Sánchez

Our strategy for building long-term shareholder value is working. Expect us to stay the course, looking to continue growing our export business, fuelling new brands, innovating at premium pricing, and seeking out opportunities to drive growth in attractive categories through acquisitions. – Antonio Sánchez
Vice-President & Chief Financial Officer