Corby Spirit and Wine (TSX:CSW) released third-quarter financial results and hosted an earnings call on Friday. Read the complete transcript below.
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Access the full call at https://app.webinar.net/gy3LjMyjMXB
Summary
CSW.A reported a strong fiscal year-to-date performance with a record high revenue growth of 15%, driven by RTD (Ready-to-Drink) segment growth and market share gains in spirits.
The company achieved 21% growth in reported net sales for Q3, with a 22% organic growth, supported by favorable order phasing and strategic investments in key brands.
Net debt to adjusted EBITDA stood at 1.4 times, and a quarterly dividend of $0.24 per share was declared, reflecting confidence in the company’s outlook despite a challenging market environment.
CSW.A’s RTD segment now represents 38% of revenue, with significant expansion across Canada, particularly in Ontario and Western Canada.
Despite the Canadian spirits market decline, the company outperformed by capturing market share, with a notable 22.4% growth in RTD compared to the market’s 10% growth.
Future outlook anticipates high single-digit revenue growth for FY26, though Q4 is expected to be softer due to normalized ordering patterns and persistent market decline.
Management highlighted disciplined cost management, strategic brand investments, and a robust financial position as key strengths supporting long-term value creation.
Full Transcript
OPERATOR
Good Morning. Welcome to Corby Spirit and Wine’s fiscal year 2026 third quarter financial results conference call for the period ended March 31, 2026. Joining me on the call this morning are Florence Tresarrieux, President and Chief Executive Officer and Juan Alonso, Vice President and Chief Financial Officer. Hopefully you have read the opportunity to review the press release which was issued yesterday. Before we begin, I would like to inform listeners that information provided in today’s call may contain forward looking statements which can be subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Risks and uncertainties about the Company’s business are more fully discussed in Corby’s materials including annual and interim MD and a filed with the securities Regulatory Authorities in Canada as required. At this time, all participants are in listen only mode. Following Management’s commentary, we will conduct a question and answer session. Instructions will be provided at the time for you to queue up for questions. If you have any difficulties hearing the conference, please press Star zero on your phone for operator assistance or press the button on your screen. Now I would like to turn the call over to Ms. Florence Tresarrieux. Please go ahead. Thank you so much and good morning everyone. Thank you for joining us to review Corby spirits and wine Q3 and fiscal year to date March results. For those of you who may be joining us for the first time, my name is Florence Tresarrieux and it’s a pleasure to speak with you again as the CEO. As I continue to spend time across the business, what remains very clear to me is the strength of our fundamentals, the quality of our portfolio and the disciplines with which our teams execute in a complex and evolving market. Turning to today’s results, message is simple. Colby delivered a strong fiscal year to date performance driven by RTD growth and continued market share gains in spirits. We’ve achieved record high fiscal year to date revenue as of March with a reported growth of 15% and organic growth of 16%. This performance was driven by sustained momentum in our RTD business, continued shockings in spirits and was also amplified by favorable LCD order phasing in Q3. These results reflect the continued excellence of our Excel’s execution with strong share gains across our total portfolio. Define also benefited from the ongoing impact of US Origin products removed from the shelf. The breadth and depth of our portfolio continue to be a key competitive advantage. In Q3 we delivered again strong shipments and earning growth at the retail. We outpaced the spirit market in value for the 14th consecutive quarter, not through resilience of any single brand or channel, but definitely through the portfolio wide execution. A notable feature this quarter is the quality of earnings delivery, earnings growth outpace revenue growth reflecting purposeful investments behind proz brands and tight cost management. This was achieved despite a more RTD skewed mix, less favorable sterile internal dynamics and declining commission income. This very much illustrates the underlying resonance of our business model. RTD now represents approximately 38% of Corby revenue, firmly establishing us as a leading Canada wide player in the south calling category. Our focus remains very much on profitable expansion, leveraging to market modernization in Ontario while continuing to build scale in Western Canada. From a financial standpoint, we generated solid cash flow supporting working capital needs this quarter and reinforcing our long term approach to value creation. Net debt to adjusted EBITDA stood at 1.4 times reflecting our strong balance sheet. The board declared a quarterly dividend of $0.24 per share consistent with the prior quarter, underscoring confidence in the outlook. Despite a more normalized market environment overall, Corby continues to gain share, strengthen earnings quality, positioning the business to perform across cycle and to adapt to market context. So let me take you through that market context. Just now Corby continued to capture incremental market share. In Q3 our team again translated opportunity into performance, notably benefiting from the removal of US origin products from shelf. The rolling three month trend ending 31 March highlights the continued strength of Corby’s performance related to the broader market.
OPERATOR
While the Canadian spirits market declined 4.2%, Corby delivered flat value performance representing a 4.2 point out performance. In RTD where the category grew almost 10%, Corby significantly outpaced the markets with 22.4% growth or a 12.7 points advantage. Our one portfolio also performed strongly growing 12% against a market decline of 0.4% translating into a 12.4 points of performance. RTV is indeed a key contributor. Nonetheless, it’s the breadth of our portfolio and the consistency of our delivery that continue to define Corby’s performance this quarter. Looking now at the rolling 12 month performance, Corby has now outperformed the Canadian market in value for what I said already 14 consecutive quarters, which is demonstrating the quality of our execution in a softer spirit and wine environment. In spirits, while the market declined 3.6%, Corgi delivers 3.1% growth, a 6.7 point out performance. RTD continued to lead with Corby growing 13.6% versus 12 persons for the category representing a CRCA 20 points outperformance Our wine portfolio also delivers strong results growing 16.2% against a market decline of 0.6% or a 16.8 points outperformance.
OPERATOR
Looking now more closely at spirits by category, Corby continues to outpace the market across most segments on a rolling 12 month basis. We are delivering growth in several categories which are declining and this includes vodka and rum benefiting from strong shelf presence following the removal of U.S. origin products. We also continue to lead the Irish whiskey category while tequila remains a key growth engine delivering double digit growth as we expand our footprint in this fast growing segment.
OPERATOR
Let me know Pivot to discuss our growth strategy. I’ve stated a few times already that RTD continues to be one of Corby’s most significant growth engines and a key contributor to our overall performance. Over the last 12 months our RTD business has delivered strong acceleration with sustained share gains supported by focused innovation and market expansion. Our dedicated RTD route to Market strategy continue to drive penetration and share gains across Ontario and Western Canada supported by RTD focused execution.
OPERATOR
In a very short period of time this approach has materially expanded RTD availability, increasing distribution from approximately 1,000 to more than 7,000 points of sales. Now in a rolling 12 month basis, Corby RTD portfolio delivered plus 32% value growth significantly outspacing the category. Over the last three months …
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