Corby Spirit and Wine Limited

In Q4 FY26, Corby reported revenue of $71.1 million, down 1% year over year; organic revenue was flat. Adjusted earnings from operations were $11.8 million, up 3%, reported earnings from operations were up 4%, adjusted EPS was $0.26, and reported EPS was $0.23. Cash from operating activities was $17.7 million, up $2.2 million year over year. For FY26, revenue reached $271.6 million, up 10% reported and 11% organic; adjusted earnings from operations were $53.7 million, up 12%; reported earnings from operations were $53.7 million, up 16%; adjusted EPS was $1.23 and reported EPS was $1.17. Cash from operating activities for the year was $37.1 million, net debt was $88.4 million, and net debt to adjusted EBITDA was 1.3x. Management did not provide specific quantitative revenue or EPS guidance for next quarter, but said it remains confident in delivering earnings growth in FY27 despite tougher comparisons and ongoing market uncertainty.

Florence Tresarrieu framed FY26 as a record year despite a challenging market, highlighting double-digit revenue growth, sustained RTD momentum, and continued spirits share gains. She emphasized a strategy centered on core brand investment, portfolio simplification, and disciplined execution, citing the Lamb's sale and renewed Pernod Ricard agreement as examples of that focus. Her tone was confident but cautious, especially on FY27, where she stressed uncertainty around U.S. products returning to shelves and the need to stay focused on controllable factors.

Juan Alonso highlighted that Q4 revenue of $71.1 million declined 1% due to LCBO order phasing, but organic revenue was flat and adjusted earnings from operations rose 3% to $11.8 million. He noted FY26 revenue of $271.6 million, adjusted earnings from operations of $53.7 million, adjusted EPS of $1.23, and reported EPS of $1.17, with operating expenses growing 9% versus revenue growth of 10%. He also cited FY26 cash from operations of $37.1 million, net debt of $88.4 million, net debt/adjusted EBITDA of 1.3x, and a 72% payout ratio on a rolling 12-month basis. He said the quarterly dividend was $0.25 per share, up 4% from the prior quarter, and reiterated a focus on protecting margins and disciplined investment.

The main analyst questions focused on the renewed Pernod Ricard agreement and whether its structure changed; management said it remains unchanged and reiterated the strength of the long-running exclusive Canadian relationship. The other key question was about the potential impact if U.S. liquor returns to shelves after benefiting Corby from shelf removals; management said the situation is fluid, declined to speculate on the impact, and said it will focus on serving Canadian consumers and managing the business with discipline. No further questions were taken.