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TORONTO, Nov. 13, 2024 /CNW/ – Corby Spirit and Wine Limited (“Corby” or the “Company”) CSW CSW, a leading Canadian manufacturer, marketer and importer of spirits, wines and ready-to-drink cocktails (“RTDs”), today announced its financial results for the fiscal first quarter (“Q1”) period ended September 30, 2024. 

Corby delivered a solid Q1 with accretive contribution of the newly acquired RTD businesses (ABG and Nude) and ongoing market share gains in spirits, despite a volatile market environment.

Revenue at $65.1 million (+11% year-over-year), organic Revenue +3% (excluding Nude)

Adjusted Earnings from Operations¹ at $15.6 million (+9%) in Q1
Reported Earnings from Operations at $15.0 million (+31%) in Q1

Adjusted Net Earnings¹ at $10.2 million (+7%) in Q1
Reported Net Earnings at $9.3 million (+24%) in Q1

Quarterly Dividend declared of $0.22 per share

FINANCIAL RESULTS

Q1 FY25 results: Revenue for the first quarter of fiscal 2025 was $65.1 million, reflecting strong growth of +$6.5 million / +11% compared to the same period last year, with the inclusion of the Nude brand contributing revenue of $4.9 million in the period (acquired during the fourth quarter of fiscal 2024). Organic revenue¹, which excludes the contribution from this acquisition, was $60.2 million during the quarter, reflecting resilient growth of +3% versus the prior year period with the following drivers:

• Domestic case goods revenue of $48.4 million, +2% benefitting from the pipeline fill supporting the route-to-market modernization in Ontario and despite a negative impact from the LCBO labour strike during which its retail locations were closed for 17 days in July 2024;
• Commissions of $7.7 million, with growth of +17%, reflecting pre-ordering by customers ahead of the holiday seasons, combined with the lapping of destocking patterns at liquor boards during the same period last year;
• Export case goods sales of $3.2 million, a decline of -16%, reflecting the lapping of pipeline fills in new markets during the same period last year, partially offset by recovering shipments in the US from the normalization of inventory levels.

Marketing, sales and administration expenses increased $1.1 million, or +7% in the first quarter of fiscal 2025, primarily reflecting the inclusion of marketing expenses and overhead related to the Nude brands. Corby continued to invest purposefully in its strategic brands (including J.P. Wiser’s, Polar Ice and the RTD portfolio), while diligently managing overheads, with overall expenses increasing at a slower rate than revenue.

Corby delivered strong improvements in earnings and profitability in the first quarter of fiscal 2025, reflective of the double-digit revenue growth and expense management noted above. Reported earnings from operations of $15.0 million and adjusted earnings from operations¹ of $15.6 million increased +31% and +9% respectively, versus the same period last year. The reported earnings include $0.6 million of costs related to Nude inventory adjusted to its fair value in the first quarter of fiscal 2025 and $2.8 million of costs related to ABG inventory adjusted to its fair value in the first quarter of fiscal 2024. Despite increased interest charges on a year-over-year basis related to the non-controlling interest obligation and the loan contracted to acquire ABG, Corby delivered reported net earnings of $9.3 million and adjusted net earnings¹ of $10.2 million in Q1 FY25, increasing by +24% and +7% year-over-year, respectively.

The Company generated solid cash flow during the quarter, with Cash Flow from Operating Activities of $3.7 million, an increase of $8.5 million year-over-year. Corby exited Q1 FY25 with a healthy balance sheet and significant financial flexibility, with its Net Debt / Adjusted EBITDA¹ ratio (on a rolling 12-month basis) at 1.8x at quarter-end.

Corby’s President and Chief Executive Officer, Nicolas Krantz, stated,

“I am pleased to share our results for the first quarter of fiscal 2025, which highlight a good start to the year for Corby, despite an overall beverage alcohol market that was severely impacted by the LCBO labour strike. We once again outperformed the broader spirits market in value growth during the quarter, supported by the diversity of our product portfolio, the ongoing effectiveness of our portfolio prioritization strategy, and Corby’s excellence in sales execution. In addition, the recent RTD acquisitions we have made have positioned Corby to capitalize on the new opportunities presented from consumer demand shifts and the recent route to market modernization in Ontario. Our Q1 revenue also reflected destocking patterns at liquor boards last year and pre-ordering ahead of the holiday season this year, which is expected to normalize throughout the fiscal year. Looking ahead, our ambition remains to deliver sustainable growth and protect profitability levels, while continuing to generate incremental long-term sustainable value for our shareholders.”

For further details, please refer to Corby’s Management’s Discussion and Analysis and interim condensed consolidated financial statements and accompanying notes for the three-month period ended September 30, 2024, prepared in accordance with International Financial Reporting Standards, available on www.sedarplus.ca and www.corby.ca/investors.

MARKET TRENDS

The LCBO labour strike in July 2024 significantly impacted the overall spirits market in value during this quarter, leading to a -1.5% decline in the last rolling 12 months. The RTD category was also impacted by the strike during the quarter but remained one of the fastest growing categories overall in the last twelve months at +4.6%.

Corby has outperformed the Canadian spirits market in value for more than two years, gaining share in most categories over this timeframe. Combining spirits, wines and RTDs, Corby outpaced the total beverage market in value growth by 150 basis points over the last 12 months, reflecting our ability to navigate the strike and the strength of our diversified product portfolio along with successful new product launches.

QUARTERLY DIVIDEND

The Corby Board of Directors is pleased to declare a dividend of $0.22 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company, consistent with the amount of the last dividend payment. This dividend is payable on December 18, 2024 to shareholders of record as at the close of business on November 29, 2024.

QUARTERLY CONFERENCE CALL

Corby management will host a conference call on Thursday, November 14^th, 2024, at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q1 period. Corby welcomes shareholders, investors, and others to access the conference call by dialing 437-900-0527 or toll free 1-888-510-2154 before the start of the call, or by joining via webcast at https://app.webinar.net/8RQ0Bnqg6zj. Following the conclusion of the call, a playback of the conference call will be available for 30 days by calling 289-819-1450 or 1-888-660-6345 and entering passcode 82600 #.

1)  NON-IFRS FINANCIAL MEASURES & RATIOS

In addition to using financial measures prescribed under IFRS, references are made in this news release to “Adjusted Earnings from Operations”, “Adjusted Net Earnings”, “Adjusted Basic Earnings per Share”, “Adjusted Diluted Earnings per Share”, “Organic Revenue” and “Adjusted EBITDA” which are non-IFRS financial measures. Non-IFRS financial measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

Management believes the non-IFRS measures included in this news release are important supplemental measures of operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS financial measures.

Management believes that these measures allow for assessment of the Company’s operating performance and financial condition on a basis that is more consistent and comparable between reporting periods.

Adjusted Earnings from Operations is equal to earnings from operations before interest and taxes for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments.

Adjusted Net Earnings is equal to net earnings for the period adjusted to remove the costs incurred for business combination inventory fair value adjustments and the notional interest charges related to NCI obligation, net of tax calculated using the effective tax rate.

Adjusted Basic Net Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.

Adjusted Diluted Earnings Per Share is computed in the same way as basic net earnings per share and diluted net earnings per share, respectively, using the aforementioned Adjusted Net Earnings non-IFRS financial measure in place of reported Net Earnings.

The following table presents a reconciliation of Adjusted Earnings from Operations and Adjusted Net Earnings to their most directly comparable financial measures for the three-month period ended September 30, 2024, and 2023:

Organic revenue growth is measured as the difference between revenue excluding case goods revenue from acquired or disposed entities compared to revenue in the preceding fiscal period during which the acquisition or disposal had not yet occurred.

The following table presents a reconciliation of total organic revenue and organic case goods revenue to their most directly comparable financial measures for the three-month period ended September 30, 2024, and 2023:

Net Debt refers to the cash and deposits in cash management pools of the Company, less bank indebtedness and credit facilities payable and long-term debt.

The following table presents a reconciliation of total debt and net debt to their most directly comparable financial measures for the three-month periods ended September 30, 2024 and 2023:

Adjusted EBITDA refers to Adjusted Earnings from Operations adjusted to remove amortization and depreciation disclosed in Corby’s financial statements. The following table presents a reconciliation of adjusted EBITDA to their most directly comparable quarterly financial measures from the three-month period ended September 30, 2024 to the three-month period ended September 30, 2022:

Please refer to the “Non-IFRS Financial Measures” & “Non-IFRS Financial Ratios” section of our MD&A for the three-month period ended September 30, 2024 as filed on SEDAR+ for further information regarding Non-IFRS measures.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements, including statements concerning possible or assumed future results of Corby’s operations. Forward-looking statements typically are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans” or similar expressions. These statements are being provided for the purposes of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes and are not guarantees of future performance. Although Corby believes that the forward-looking information in this press release is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking information. For more information on the risks, uncertainties and assumptions that could cause Corby’s actual results to differ from current expectations, refer to the Risks and Risk Management section of our Management’s Discussion and Analysis for the three month period ended September 30, 2024 as well as Corby’s other public filings, available at www.sedar.com and at https://corby.ca/en/investors/. Corby does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.

About Corby Spirit and Wine Limited

Corby Spirit and Wine Limited is a leading Canadian manufacturer, marketer and distributor of spirits and imported wines, and ready-to-drink beverages. Corby’s portfolio of owned-brands includes some of the most renowned brands in Canada, including J.P. Wiser’s®, Lot 40®, and Pike Creek® Canadian whiskies, Lamb’s® rum, Polar Ice® vodka and McGuinness® liqueurs, as well as the Ungava® gin, Cabot Trail® maple-based liqueurs and Chic Choc® spiced rum, Cottage Springs® and Nude® ready-to-drink beverages and Foreign Affair® wines. Through its affiliation with Pernod Ricard S.A., a global leader in the spirits and wine industry, Corby also represents leading international brands such as Absolut® vodka, Chivas Regal®, The Glenlivet® and Ballantine’s® Scotch whiskies, Jameson® Irish whiskey, Beefeater® gin, Malibu® rum, Olmeca Altos® and Código 1530® tequilas, Jefferson’s™ and Rabbit Hole® bourbons, Kahlúa ® liqueur, Mumm® champagne, and Jacob’s Creek®, Wyndham Estate®, Stoneleigh®, Campo Viejo®, and Kenwood® wines. Corby is a publicly traded company based in Toronto, Ontario, and is listed on the Toronto Stock Exchange under the trading symbols CSW.A and CSW.B. For further information, please visit our website or follow us on LinkedIn.

SOURCE Corby Spirit and Wine Limited

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• 3% increase in 1Q’25 total net revenues to $14.6 million
• 26% increase in 1Q’25 subscription and support revenues to $8.2 million
• 45% gross margins in 1Q’25
• Net income in 1Q’25 of $71,000 building on FY’24 profitability
• Cash and cash equivalents increased to $24.5 million
• Signed expansion agreement with major automaker in China increasing contract value to over $30 million
• Signed $16 million agreement with major automaker in the United States

ENCINO, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) — NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and asset finance solutions provider, reported results for the fiscal first quarter of 2025 ended September 30, 2024.

Najeeb Ghauri, Co-Founder, Chief Executive Officer, and Chairman of NETSOL Technologies Inc., commented, “We’re continue to build on the foundation we laid in 2024, achieving profitability in the first fiscal quarter of 2025 driven by a 26% increase in recurring subscription and support revenues and consistent services revenues when compared to the first quarter of fiscal 2024. Moreover, we are strengthening our balance sheet and are aggressively but strategically investing in the growth of our business, with a particular focus on AI, as we expand our product offerings and grow our presence in both new and existing geographic markets.”

Fiscal First Quarter 2025 Financial Results

Total net revenues for the first quarter of fiscal 2025 increased 3% to $14.6 million, compared with $14.2 million in the prior year period, driven by a 26% increase in subscription and support revenues and consistent services revenues in the quarter. On a constant currency basis, total net revenues were $14.5 million.

• No meaningful license fees compared with $1.3 million in the prior year period.
• Total subscription (SaaS and Cloud) and support revenues increased 26% to $8.2 million compared with $6.5 million in the prior year period. Total subscription and support revenues as percentage of sales increased to 56%, compared with 46% in the prior year period. Total subscription and support revenues on a constant currency basis were $8.1 million.
• Total services revenues were $6.4 million, compared with $6.5 million in the prior year period. Total services revenues on a constant currency basis were $6.3 million.

Gross profit for the first quarter of fiscal 2025 was $6.6 million or 45% of net revenues, compared to $6.2 million or 43% of net revenues in the first quarter of fiscal 2024. On a constant currency basis, gross profit was $6.7 million or 46% of net revenues as measured on a constant currency basis.

Operating expenses for the first quarter of fiscal 2025 were $7.3 million or 50% of sales compared to $5.8 million or 41% of sales for the first quarter of fiscal 2024. On a constant currency basis, operating expenses were $7.2 million or 49% of sales on a constant currency basis.

Loss from operations for the first quarter of fiscal 2025 was $(760,000) compared to income from operations of $350,000 in the first quarter of fiscal 2024.

GAAP net income attributable to NETSOL for the first quarter of fiscal 2025 totaled $71,000 or $0.006 per diluted share, compared with GAAP net income of $31,000 or 0.003 per diluted share in the prior year period.

Non-GAAP EBITDA for the first quarter of fiscal 2025 was $302,000 or $0.03 per diluted share, compared with non-GAAP EBITDA of $805,000 or $0.07 per diluted share in the first quarter of fiscal 2024 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).

Non-GAAP adjusted EBITDA for the first quarter of fiscal 2025 was $204,000 or $0.02 per diluted share, compared with a non-GAAP adjusted EBITDA of $466,000 or $0.04 per diluted share in the prior year period (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).

Balance Sheet and Capital Structure

Cash and cash equivalents was $24.5 million as of September 30, 2024, compared with $19.1 million as of June 30, 2024. Working capital was $24.2 million as of September 30, 2024, compared with $23.6 million as of June 30, 2024. Total NETSOL stockholders’ equity at September 30, 2024, was $34.7 million or $3.03 per share.

Management Commentary

“Our performance in the first quarter of 2025 was driven by encouraging trends including a double-digit increase in subscription and support revenue and consistent services revenues when compared to the first quarter of 2024,” Najeeb Ghauri, Co-Founder, Chief Executive Officer, and Chairman of NETSOL Technologies Inc., commented. “Importantly, we achieved these results without recognizing any meaningful license fees in the quarter, demonstrating a shift in our revenue to rely less on large, one-time licensing fees and benefit from more predictable and consistent SaaS sales.

“We continued to invest in the growth of our business during the quarter,” Mr. Ghauri continued. “Geographic expansion remains a key strategic focus for us, and we believe that there is significant opportunity for growth in new markets, as well as the ones that we currently hold a leadership position in as we continue to innovate and evolve our product offerings to meet shifting market demands. The recent product rebranding has been particularly well received and we’re focused on investing in our business development initiatives to create a more sustainable pipeline of opportunities across all our markets.

“Growth in the United States continues to be a top priority, and we’re making encouraging progress as we continue to penetrate this region. During the quarter, we announced a five-year, $16 million deal with a major automaker and to revolutionize their digital car buying experience through Transcend Retail, our omnichannel digital retail platform. We’re performing in our established markets as well – during the quarter, we signed an expansion agreement with a major automaker in China increasing the contract value to over $30 million, demonstrating our strength of customer relationships and ongoing demand for our products from Tier 1 names in the auto industry. We remain confident that we will be able to achieve double digit revenue growth this fiscal year.”

Roger Almond, Chief Financial Officer of NETSOL Technologies Inc., commented, “Our first quarter results reflect the strengthening of our business model with solid growth of our recurring revenue base. From a liquidity standpoint, we strengthened our balance sheet in the quarter with a cash position of $24.5 million compared with $19.1 million at the close of fiscal 2024, as well as improved working capital. Looking ahead, we believe that NETSOL is well positioned to deliver double-digit revenue growth in fiscal 2025 and drive enhanced value for our shareholders.”

Conference Call

NETSOL Technologies management will hold a conference call on Wednesday, November 13, at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss these financial results. A question-and-answer session will follow management’s presentation.

U.S. dial-in: 877-407-0789
International dial-in: 201-689-8562

Please call the conference telephone number 5-10 minutes prior to the start time and provide the operator with the conference ID: NETSOL. The operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Investor Relations at 203-972-9200.

The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.

A telephone replay of the conference call will be available approximately three hours after the call concludes through Wednesday, November 27, 2024.

Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13750042

About NETSOL Technologies
NETSOL Technologies, Inc. NTWK is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in ten strategically located support and delivery centers throughout the world. NETSOL’s products help companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.

Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company’s products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.

Investor Relations Contact:

IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200