Corby Spirit and Wine Limited

Good morning. Welcome to Corby's Period and Wine's Fiscal Year 2026 First Quarter Financial Results Conference Call for the period ended September 30, 2025. Joining me on the call this morning are Nicola Krantz, President and Chief Executive Officer, and Juan Alonso, Vice President and Chief Financial Officer. Hopefully, you've had the opportunity to review the press release, which was issued yesterday. Before we begin, I would like to inform listeners that information provided on 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&A, filed with the securities regulatory authorities in Canada as required. At this time, all participants are in a listen-only mode. Following management's commentary, we will conduct a question-and-answer session. Instructions will be provided at that 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 click the Help button on your screen. Now, I would like to turn the call over to Mr. Krantz.

Thank you very much, and good morning, everyone.

I am Nicolas Krantz, and it's a pleasure to connect with you today, joined by Juan Alonso, our CFO, to share Corby, Spirit, and Juan's Q1 results as we kick off fiscal year 2026. In a few minutes, Juan will walk you through the financials in more detail, but I will begin by highlighting the key drivers that are a strong start to the year in what continues to be a volatile and evolving market environment. Indeed, it's been a good start, strong start, with a record high quarterly reported revenue and net earning growing plus 16% and 9% respectively, fueled by continued share gains in spirits and the rapid expansion of our RTD business. This marked our third consecutive year of outperforming the overall spirit market, a testament to the strength and resilience of our strategy and diversified brand portfolio. Our RTD strategy continues to deliver. Corby is now positioned as one of the key players in the Canada fastest growing RTD category. Importantly, we are outpacing category growth as well. Part of the success for the RTD portfolio and our wine portfolio has been successfully capitalizing on the Ontario route to market modernization, creating new opportunities for consumer engagement. Now turning to market dynamics, the Canadian spirits landscape is evolving. and we've seen some reduced purchasing patterns in Ontario as the new channel expands, and we are now lapping the LCBO labor strike from July 2024. But despite these factors, we have delivered consistent profitability margins against a dynamic backdrop, reflecting strong operational execution. Notably, our Q1 performance reflects the excellence of our sales execution, with a strong share across the total portfolio, and within the context of the U.S.-origin products being removed from shelves. also benefiting from favorable order-facing effects expected to normalize in Q2, but more on that to come. Beyond top-line growth, we continue to actively manage our portfolio to enhance Corby's growth profile, and during the quarter, we completed the disposal of certain non-core ABG brands, and also one we'll give a bit more detail, allowing us to sharpen our focus on priority categories and accelerate our growth. Finally, from a financial perspective, we deliver strong cash flow generation, supporting by attractive capital returns to shareholders. Our balance sheet remains healthy, and the net debt to adjusted EBITDA at 1.4 is proving to show our flexibility for balance sheet. In line with our confidence in the outlook, we maintain our quarterly dividend at 23 cents per share, consistent with our Q4 FY25, and up 5% relative to the Q1 FY25, signaling the sustainability of our dividend policy.