Corby Spirit and Wine Limited attributes its success to growing RTD segment
Corby Spirit and Wine Limited announced record full-year results for the fiscal year ended June 30, 2026. Driven by ready-to-drink cocktail expansion and spirits market share gains, the company delivered 11% organic revenue growth and a 10% increase in total revenue to $271.6 million. Full-year net earnings rose 22% to $33.4 million, while adjusted net earnings grew 15% to $35.1 million. Corby also declared a quarterly dividend of $0.25 per share, representing a 4.2% increase.
Q4 results reflect ordering shifts
Fourth quarter revenue was $71.1 million, down 1% year over year, while organic revenue remained flat. Domestic case goods revenue fell 2% to $57.7 million during the quarter. This decline was caused by expected unfavourable LCBO order phasing after orders were pulled forward into the third quarter ahead of an enterprise resource planning system upgrade. Persistent spirits market declines also contributed to softening results.
Growth in the ready-to-drink category helped offset these order shifts. The segment benefited from an LCBO markup change in Ontario along with expansion across Western Canada and Ontario through route-to-market modernization. Corby spirits also gained from the removal of US-origin products from retail shelves in key provinces.
Export case goods sales rose 37% to $5.2 million in the quarter due to strong shipment growth in the US and UK markets. Commission revenue dropped 5% to $7.3 million because of softer overall performances from imported spirits, ready-to-drink products and wines, though the inclusion of the Canada Dry Mott's Inc. portfolio provided a partial offset.
Fourth quarter gross margin rate rose 140 basis points to 49%, aided by margin optimization within ready-to-drink products and export spirits. Adjusted EBITDA for the quarter fell 5% to $14.7 million. Net earnings reached $6.5 million, up 4%, while adjusted net earnings fell 1% to $7.4 million. Marketing, sales and administrative expenses stayed flat at $23.7 million.
Full year highlights strong category momentum
For the full year, domestic case goods revenue reached $219.7 million, up 13% over the prior period. Export revenue surged 22% to $18.2 million, supported by new channel pipeline fill in Eastern Europe, growth for J.P. Wiser's in the US market and improved volume-to-value conversion for Lamb's rum in the UK. Full-year commission revenue fell 4% to $29.4 million.
The full-year gross margin rate decreased slightly by 92 basis points to 49% due to higher domestic spirit input costs, lower commission income and a larger revenue share coming from ready-to-drink products. Full-year marketing, sales and administrative expenses rose 4% to $80.0 million, driven by investments in ready-to-drink products, brand building and a multi-year J.P. Wiser's partnership with the National Hockey League.
Full-year adjusted EBITDA rose 5% to $67.5 million. Annual cash flow from operating activities decreased 17% to $37.1 million because of higher income tax payments and increased working capital requirements for inventory and receivables. Corby finished the year with a net debt to adjusted EBITDA ratio of 1.3x.
Looking ahead to fiscal 2027
During the fiscal year, Corby divested certain non-core ABG brands and disposed of the Lamb's brand to focus on higher-margin growth opportunities. Corby president and chief executive officer Florence Tresarrieu noted that fiscal 2026 was a pivotal year, but warned that fiscal 2027 will bring market uncertainty, including questions surrounding the potential return of US products to Canadian shelves and a more challenging comparison base. Tresarrieu stated the company will maintain its focus on ready-to-drink momentum, core brand investment and disciplined cost management.
