Corby Spirit and Wine (CSW-A) Q2 2025 earnings summary

Executive summary

• Achieved strong H1 FY25 results with double-digit reported revenue growth and 4% organic growth, outperforming the Canadian market for over two years.

• Strategic acquisitions of ABG and Nude expanded presence in the fast-growing RTD category, supported by route-to-market modernization in Ontario, adding nearly 6,000 new distribution points.

• Maintained robust cash flow and a solid balance sheet, with Net Debt to Adjusted EBITDA ratio of 1.3.

• Increased quarterly dividend to CAD 0.23 per share, a 5% rise, reflecting confidence in outlook and recent earnings growth.

• Adjusted EBITDA grew 10% in Q2 and 9% in H1; adjusted net earnings up 8% in both periods.

Financial highlights

• Q2 FY25 revenue reached CAD 61.7 million, up 10% year-over-year, with organic revenue up 5%.

• H1 FY25 revenue totaled CAD 126.8 million, up 11% year-over-year; organic revenue grew 4%.

• Q2 adjusted EBITDA: CAD 17.2 million (+10%); H1 adjusted EBITDA: CAD 36.7 million (+9%).

• Q2 adjusted net earnings: CAD 8.4 million (+8%); H1 adjusted net earnings: CAD 18.6 million (+8%).

• Cash from operating activities in H1 was CAD 35.6 million, a CAD 14.4 million improvement year-over-year.

Outlook and guidance

• Focus remains on sustainable growth, innovation, and efficiency, with innovation targeted to contribute one-third of annual revenue growth.

• Management remains confident in business resilience and ability to leverage competitive advantages for value share gains.

• Market expected to remain challenging, with spirits category forecasted to decline in H2, but continued market share gains targeted.

• Ongoing monitoring of regulatory and trade changes, including U.S.-Canada tariffs.