Corby Spirit and Wine (CSW-A) Q3 2025 earnings summary

Executive summary

• FYTD March 2025 revenue grew 7% to CAD 174.8 million, driven by RTD business, portfolio diversification, and the inclusion of Nude brands; organic revenue was flat.

• Q3 revenue was CAD 48 million, down 1% year-over-year, with organic revenue down 9% due to high prior-year base and LCBO de-stocking.

• Outperformed the Canadian spirits market for two consecutive years, gaining 1.6 percentage points of share despite a challenging environment.

• Integration of acquisitions, especially ABG, S Beverage, and New Beverage/Nude brands, contributed significantly to growth.

• Strong cash flow generation supported an attractive dividend and maintained a healthy balance sheet.

Financial highlights

• Q3 adjusted EBITDA was CAD 11.7 million, down 10% year-over-year; FYTD March adjusted EBITDA was CAD 48.4 million, up 4%.

• Q3 adjusted EPS was CAD 0.16 (down 20%), reported EPS CAD 0.14 (down 6%); FYTD March adjusted EPS was CAD 0.81 (up 1%), reported EPS CAD 0.75 (up 11%).

• Cash flow from operations for the nine months was CAD 29.2 million, up CAD 14.6 million year-over-year.

• Dividend per share for Q3 was CAD 0.23, a 10% increase over last year; year-to-date dividend was CAD 0.68, up 8%.

• Marketing, sales, and admin expenses rose 4% to CAD 53.4 million in FYTD March, mainly due to Nude brands acquisition.

Outlook and guidance

• Spirits market expected to continue declining in Q4, but further market share gains targeted.

• Company aims to unlock RTD portfolio potential and capitalize on Ontario retail modernization.

• Focus on continued market share gains, innovation, and prudent capital allocation for long-term growth.