TORONTO, Feb. 11, 2026 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A) (TSX: CSW.B), a leading Canadian manufacturer, marketer and importer of spirits, wines and ready-to-drink cocktails ("RTDs"), today announced its financial results for the fiscal second quarter ("Q2") and the six-month period ended December 31, 2025 ("H1").
Strong Q2 and record H1 results led by continued RTD business expansion (+28% and +37% in retail sales value year-over-year, respectively) and significant market share gains in spirits (outpacing the market +689bps year-over-year in Q2)
Q2 Revenue of $66.9 million (+9% year-over-year) and Organic Revenue1 +10%
Record H1 Revenue at $142.3 million (+12%) and Organic Revenue1 +13%
Q2 Adjusted Net Earnings1 at $9.1 million (+8%) (Reported +12%)
H1 Adjusted Net Earnings1 at $20.1 million (+8%) (Reported +11%)
Quarterly Dividend declared of $0.24 per share, an increase of +4.3%
FINANCIAL RESULTS
Q2 FY26 results: Revenue for the second quarter of fiscal 2026 was $66.9 million, reflecting strong growth of $5.3 million or 9% compared to the same period last year. Organic revenue1, which excludes the contributions in both the current period and the comparable period from non-core brands disposed in the second quarter of fiscal 2026, saw very dynamic growth of 10% compared to the prior year period owing to the following drivers:
- Domestic case goods revenue of $53.4 million, up 12% compared to the prior year period. This growth was primarily led by the RTD business expansion following the route-to-market ("RTM") modernization in Ontario. In addition, Corby delivered value growth and market share gains in spirits, despite the spirits market declining on a year-over-year basis (see Market Trends section);
- Commissions of $7.8 million, reflecting a decline of 8% year-over-year, with a strong comparable period in Q2 FY25 that reflected pipeline fill in new channels. These impacts were partially offset by favourable LCBO ordering patterns; and
- Export case goods sales of $4.8 million, an increase of 25% compared to the prior year period, led by strong sales execution and renewed channel pipeline fill in strategic markets.
In the second quarter of fiscal 2026, marketing, sales and administrative expenses remain broadly stable at $18.4 million (+1%), reflecting purposeful investments behind key brands and ongoing diligent cost management.
Earnings from Operations and Adjusted Earnings from Operations1 totaled $13.8 million in the second quarter of fiscal 2026, representing year-over-year growth of 6% for both metrics. Strong revenue growth and diligent cost management was partly offset by an RTD-skewed portfolio mix and channel mix impacts on gross margin.
Adjusted EBITDA1 for the second quarter of fiscal 2026 was $17.3 million, an increase of 1% compared to the same period last year. The new representation agreement with Vinarchy, signed in the first quarter of fiscal year 2026, resulted in lower amortization of upfront fees relative to when the brands were owned by Pernod Ricard in the same period last year, resulting in an unfavorable year–over–year impact on Adjusted EBITDA1.
Net Earnings was $8.8 million and Adjusted Net Earnings1 was $9.1 million in Q2 FY26, an increase of 12% and 8% year-over-year, respectively.
H1 FY26 results: Revenue for the first half of fiscal 2026 totaled $142.3 million, an increase of $15.5 million or 12% compared to the same period last year, marking the highest H1 revenue reported in Corby's history. Excluding the impact from non-core disposed brands in both the current period and the comparable period, Corby delivered organic revenue1 growth of $16.5 million or 13%. This performance was supported by excellent sales execution, continued RTD business expansion, and enhanced shelf visibility for owned and represented spirits amid provincial trade measures:
- Domestic case goods revenue of $113.7 million, up 14% year-over-year. Factors supporting the strong revenue performance included the continued expansion of the RTD business, supported by significant spirits market share gains, in part owing to the removal of US-origin products in key provinces, and the cycling of the LCBO labour strike impact last year;
- Commissions revenue was $16.0 million, reflecting a modest 1% year-over-year contraction, impacted by the represented wines portfolio lapping a higher comparison basis in H1 FY25 due to RTM modernization pipeline fill in that period; and
- Export revenue totaled $9.7 million, an increase of 38% year-over-year, driven by new channel pipeline fill in strategic markets, as well as a strong recovery of shipments to the US and innovation launches in the UK.
Marketing, sales and administrative expenses were $38.5 million in the first half of fiscal 2026, an increase of $2.2 million, or 6% compared to the prior year period, significantly below Net Sales growth, reflecting ongoing diligent cost management. Those investments reflect continued support for the growing RTD business, brand-building initiatives, and strategic partnerships – notably the J.P. Wiser's multi-year Canadian partnership with the National Hockey League - while cycling a low comparison basis last year given the Ontario liquor board strike in that period.
Earnings from Operations and Adjusted Earnings from Operations1 totaled $30.3 million in the first half of fiscal 2026, increasing by 8% and 6% year-over-year, respectively. Strong revenue growth and diligent cost management was partly offset by an RTD-skewed portfolio mix and channel mix impacts on gross margin.
Adjusted EBITDA1 for the first half of fiscal 2026 was $37.6 million, an increase of 2% compared to the same period last year. The new representation agreement with Vinarchy, signed in the first quarter of fiscal year 2026, resulted in lower amortization of upfront fees relative to when the brands were owned by Pernod Ricard in the same period last year, resulting in an unfavorable year–over–year impact on Adjusted EBITDA1. Average annualized cash flows over the life of the agreements are expected to remain broadly consistent.
Corby reported Net Earnings of $19.0 million and Adjusted Net Earnings1 of $20.1 million in the first half of fiscal 2026, an increase of 11% and 8% year-over-year, respectively.
The Company continued to generate strong cash flow in the first half of fiscal 2026, with Cash Flow from Operating Activities totaling $37.0 million, an increase of $1.5 million or 4% year-over-year. Corby closed Q2 FY26 with a Net Debt / Adjusted EBITDA1 ratio (on a rolling 12-month basis) of 1.1x, an improvement over the prior quarter at 1.4x, illustrating the continued strengthening of its balance sheet. Corby recorded a dividend payout ratio1 of 57% over the last four quarters, reflecting its sustainable shareholder return policy and balanced capital allocation strategy.
Corby's President and Chief Executive Officer, Florence Tresarrieu, stated,
"Corby delivered another strong quarter in Q2, further strengthening the momentum we have built in the first half of the fiscal year. Our record H1 revenue and continued earnings growth attest to the strength and balance of our diversified portfolio, the ongoing success of our RTD expansion, and the disciplined commercial execution of our teams across the country. In a volatile and declining market environment, our team has responded with tenacity and resilience to capture significant incremental market share in both spirits and RTDs, highlighting the relevance of our strategy, the power of our partnerships, and Corby's ability to deliver strong performance irrespective of the market backdrop.
I am inspired by the strong foundation the organization has built and the results delivered. Looking ahead, our focus remains clear: to continue outperforming the market in a sustainable and profitable manner. We will achieve this through focused and diligent investments in our core brands, further accelerating our RTD business expansion, and unlocking new opportunities as the Canadian retail and regulatory landscape evolve, while remaining disciplined on costs. Signaling our continued confidence in the outlook ahead, the Board has approved an increase in our dividend this quarter of approximately 4%, our third announced dividend increase in less than 18 months.
I sincerely thank our employees, customers, and partners for their trust and dedication. Their unwavering commitment positions Corby uniquely to continue navigating industry complexity with agility, while building on our strong track-record of creating sustainable long–term 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 and six-month periods ended December 31, 2025, prepared in accordance with IFRS Accounting Standards, available on and .
MARKET TRENDS
In Q2 FY26, Corby delivered exceptional results in a weaker market impacted by changes in the beverage alcohol landscape in Ontario, further compounded by the British Columbia General Employees' Union (BCGEU) labour strike. While the overall spirits category declined 4% in value relative to the comparable period last year, Corby's spirits retail sales achieved value growth of 2%. Corby's total represented spirits (including PR spirits) have now outperformed the Canadian spirits market in value for thirteen consecutive quarters. Corby RTDs2 increased 28% in value in Q2 FY26 compared to the same quarter last year, significantly outperforming the overall RTD2 category, which grew 11% in value, as the category continues to be shaped by evolving consumer preferences and expanded distribution points in Ontario.
In the last twelve months ended December 31, 2025, Corby spirits posted 2% value growth year-over-year in a spirits market that declined 4%, and Corby RTDs2 were dynamic, increasing 28% in value year-over-year, also significantly outpacing the RTD market, which grew 12% year-over-year. This outperformance reflects the strength of Corby's diversified product portfolio, local brand resonance, excellent sales execution and continued innovation success as well as its sustained ability to successfully navigate a shifting retail landscape and ongoing supply and labour disruptions coast-to-coast.
QUARTERLY DIVIDEND
The Corby Board of Directors is pleased to declare a regular quarterly dividend of $0.24 per Voting Class A Common Share and Non-Voting Class B Common Share of the Company, an increase of $0.01, or +4.3% from the previous quarterly dividend of $0.23 per share. This dividend is payable on March 11, 2026, to shareholders of record as at the close of business on February 25, 2026. The Board of Directors assesses the dividend on a quarterly basis. Previous to this announcement, the quarterly dividend was last increased concurrent with the release of Q2 FY25 results.
QUARTERLY CONFERENCE CALL
Corby management will host a conference call on Thursday, February 12, 2026, at 9:00 a.m. (EST) to review and discuss the financial and operational results for the Q2 and H1 FY26 periods. Corby welcomes stakeholders, investors, and other individual followers to access the conference call by dialing 1-437-900-0527 or toll free 1-888-510-2154 before the start of the call, or by joining via webcast at. Following the conclusion of the call, a playback of the conference call will be available for 7 days by calling 289-819-1450 or 888-660-6345 and entering passcode 61911 #. A replay of the webcast will also be posted on Corby's website under the "Investors" section at .