Corby Spirit and Wine Q2 Earnings Call Highlights

Core Insights - Corby Spirit and Wine reported a record-breaking first half of fiscal 2026, driven by market share gains in spirits and a strong ready-to-drink (RTD) business, which now constitutes approximately one-third of total revenue [4][6] Financial Performance - Second-quarter revenue reached $66.9 million, marking a 9% increase year-over-year, with 10% organic growth [2] - For the first half, revenue totaled $142.3 million, up 12% reported year-over-year and 13% organically, setting a company record for first-half performance [2][3] - Adjusted operating earnings for the second quarter were $13.8 million, reflecting a 6% year-over-year increase, with adjusted earnings per share (EPS) of $0.32, an 8% growth [8][9] Business Strategy and Growth Drivers - The RTD category was highlighted as a core strategic pillar, contributing nearly three-quarters of net sales growth in the fiscal half [3][4] - Corby experienced a 27.7% growth in the RTD segment over the rolling three months, significantly outperforming the overall Canadian spirits market, which declined by 4.4% [7][6] - The company increased its ownership of ABG to 95% and exited non-core assets to streamline its portfolio, enhancing its growth profile [5][14] Profitability and Cash Flow - Cash from operating activities was reported at $31.4 million for the second quarter and $37 million for the first half, a year-over-year increase of $1.5 million [11] - The company reduced its debt to $72 million, improving its leverage position to a net debt/adjusted EBITDA ratio of 1.1x [12][11] Dividend and Shareholder Returns - The board declared a quarterly dividend of $0.24 per share, a 4% increase from the previous quarter, with a total of $0.47 per share declared for the first half [13] - The dividend yield was reported at 6.5% at the end of the first half, with a payout ratio of 57% over the rolling twelve months [13] Market Outlook - Management anticipates some normalization in growth for the second half but expects strong full-year revenue growth, supported by the Canadian portfolio and continued RTD expansion [17][16]