Corby Spirit and Wine (TSE:CSW.A) executives highlighted what they described as a “record-breaking” first half of fiscal 2026, driven by continued market share gains in spirits and an accelerating ready-to-drink (RTD) business that now represents roughly one-third of company revenue. On the company’s fiscal year 2026 second-quarter earnings call, President and CEO Florence Trésarrieu—participating in her first earnings call in the role—said the first half delivered the highest first-half revenue in Corby’s history, supported by disciplined execution in a volatile and competitive market.
Record first-half revenue, RTD driving growth
Trésarrieu said first-half reported revenue rose 12% with organic growth of 13%, calling the period a “very strong first half” for Corby. She emphasized RTD as a core pillar of strategy, noting it represented approximately one-third of net sales and contributed almost three-quarters of net sales growth in the fiscal half.
Market context: outperformance in spirits, wine, and RTD
Management attributed performance to both portfolio breadth and execution, including benefits from improved shelf prominence of Corby spirits following the removal of U.S.-origin products from shelves in some provinces. Trésarrieu said Corby accelerated market share gains across categories in the second quarter.
In the rolling three months ending December 31, Trésarrieu said the Canadian spirits market declined 4.4%, while Corby outperformed by 6.9 percentage points and delivered 2.5% value growth. She also said the company’s wine portfolio grew 11.9% against a slightly declining market of -0.7% over the same period.
RTD remained the standout category. Trésarrieu said RTD delivered 27.7% growth over the rolling three months, reinforcing it as a strategic growth engine. Over the 12 months ending December 31, she said Corby’s RTD business delivered 28.1% growth, which she characterized as 16.5 points above the category.
By spirits subcategory, Trésarrieu pointed to growth in otherwise declining rum and vodka categories, aided by shelf prominence amid restrictions on U.S.-origin products. She said Corby remains the category leader in Irish whiskey and expanded its footprint in tequila with double-digit growth. She added that blended Scotch performance was impacted by production challenges, but management remains “optimistic” about regaining share, alongside opportunities in Canadian whiskey supported by the J.P. Wiser’s NHL partnership.
Profitability, cash flow, and balance sheet
Alonso reported adjusted earnings from operations of $13.8 million in the second quarter, up 6% year-over-year, citing strong revenue and cost discipline partially offset by RTD SKU mix, portfolio mix, and channel mix effects on margins. Adjusted earnings per share were $0.32 and reported EPS was $0.31, which he said represented growth of 8% and 12%, respectively.
For the first half, adjusted earnings from operations increased 6% year-over-year, with adjusted EPS of $0.71 and reported EPS of $0.67, up 8% and 11%, respectively, according to management. Alonso said operating expenses increased 13% in the first half, reflecting support for RTD growth and strategic investments such as the Wiser’s NHL partnership.
Corby also emphasized cash generation. The company reported $31.4 million in cash from operating activities in the second quarter and $37 million in the first half, a $1.5 million increase year-over-year. Alonso said the first-half cash flow supported dividends, an increased stake in ABG, and debt reduction, with debt reduced to $72 million after loan repayment—about a $13 million improvement compared with fiscal 2025.
Management highlighted a stronger leverage position, with net debt to adjusted EBITDA at 1.1x at the end of the quarter, down from 1.4x at the end of the first quarter. Trésarrieu said the leverage profile provides flexibility to invest behind brands for future growth.
Dividend increase and portfolio moves
The board declared a quarterly dividend of $0.24 per share, an increase of $0.01, or 4%, from the prior quarterly dividend. For the first half, total dividends declared were $0.47 per share, up 4% from the prior year period. Alonso also cited a rolling twelve-month dividend payout ratio of 57% and said the dividend yield was 6.5% at the end of the first half.
On portfolio management, Trésarrieu said Corby increased its ownership of ABG to 95% and exited non-core Ace Hill Beer, Ace Hill RTD, and Liberty Village Dry Cider, describing the actions as streamlining the business and sharpening ABG’s growth profile.
Route-to-market execution and what’s ahead
In the call’s lone question—read from the console—management addressed how Corby has adapted its RTD route-to-market approach, particularly in Ontario as retail channels modernize. Trésarrieu said RTD outperformance has been driven by a strong team mindset, fast-paced innovation aligned to consumer trends, and a dedicated RTD route-to-market approach. Alonso added that Corby strengthened its team early in the fiscal year to capture opportunities in different channels such as grocery and convenience.
Management also clarified that the boycott of U.S. products helped support share gains in spirits, but said it was not related to RTD outperformance. Alonso reiterated that RTD growth was tied to execution and route-to-market modernization, including expansion beyond Ontario into other provinces.
Looking ahead, Alonso said Corby expects some normalization in growth in the second half after a strong first half, but still anticipates “strong full-year revenue growth,” supported by strength in the Canadian portfolio and continued RTD expansion. He said the company remains focused on protecting margins, driving profitable growth, and generating long-term shareholder value, while staying agile if U.S. products return to shelves.
About Corby Spirit and Wine (TSE:CSW.A)
Corby Spirit and Wine Ltd is a Canadian manufacturer, marketer and importer of spirits and wines. The company derives its revenues from the sale of its owned-brands in Canada and other international markets, as well as earning commissions from the representation of selected non-owned brands in the Canadian marketplace. The company also supplements these primary sources of revenue with other ancillary activities incidental to its core business, such as logistics fees. The company has two reportable segments: Case Goods and Commissions.
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