Good morning. Welcome to Corby Spirit and Wine 's Fiscal Year 2025 Q4 Year-End Financial Results Conference Call for the period ended June 30, 2025. Joining me on the call this morning are Nicolas Krantz, President and Chief Executive Officer, and Juan Alonso, Vice President and Chief Financial Officer. Hopefully, you 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 this 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 Q&A 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 the 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. I am joined by Juan Alonso, our CFO, and we will share today the Corby Q4 results, and of course, with that, our full-year FY 2025 results. Juan will walk through, of course, the financials in more detail, but I will begin our session with highlighting the key drivers behind our strong performance in what continues to be a volatile and evolving market environment. We close FY 2025 with robust momentum, delivering +7% reported revenue growth and +15% earnings growth, fueled by continued share gain in Spirit and, of course, the rapid expansion of our RTD business. This marks our third consecutive year of outperforming the overall Spirit market and, for us, a testament to the strength and resilience of our diversified brand portfolio.
Our strategic acquisition of ABG and Nude have also proven to be accretive, positioning Corby as a leading player now in the fast-growing RTD category across Canada, and these brands have been instrumental in accelerating our growth trajectory and reinforcing our consumer-centric approach. One note I would like to make on our Q4 sales specifically, our success today notably reflected our proudly Canadian sales execution, with our commission and local brand gaining share, with U.S. origin Spirit being removed from shelves across most provinces since March. These shifts have created a meaningful opportunity for our portfolio to step up and deliver, and we'll see that in our commercial results in a minute.
Finally, and something Juan, of course, will expand on, we've continued to generate strong cash flow, enabling attractive capital returns to shareholders and further strengthening our balance sheet, with our net debt to adjusted EBITDA ratio reduced to 1.4x . In line with this, our performance and confidence in the outlook, we maintain our quarterly dividend of CAD 0.23 per share, consistent with Q3 FY 2025, but up 10% relative to Q4 FY 2024, reflective of the sustainability of our dividend policy. Before going into the financials, let me give you a brief overview of the market context. Again, starting with Q4, the final quarter of the fiscal year, very proud to share that Corby delivered a strong commercial growth and accelerated the share gain across all categories, despite, of course, the challenging market context.
In what we call the rolling three months, that's the Q4, our commercial execution proved to be highly effective, enabling us to capture share across all categories, as I mentioned, following the removal of U.S. origin products from shelves in most provinces. You can see here the numbers, very, very strong performance. We can probably call it finally being outstanding for this Q4 because we are eight points above the Spirit market, 13 points above the RTD market, and even in Wine, we are delivering an outstanding performance of a double- digit. This last quarter is probably, again, the testament of the execution of the team and has enabled us to deliver a very strong performance. That leads us to the full-year results. This momentum in Q4 translates into a strong close of the fiscal year. Exciting.
With Corby, once again, gaining share across all categories when we look at the 12-month period. That also, now for the third time, third year in a row, that's our performance, and that's something that we've been really, really targeting and chasing to deliver this performance. Whilst the Spirit market is declining and our depletions are also slightly declining, we are performing way above the market. You will notice that the ready-to-drink category continues to be a dynamic category, growing by 7%. We'll come back to it when we talk about our strategic acquisition. While Spirit and Wine are declining, RTD continues to be in good growth, and across those three categories, we are delivering the performance significantly above the market.
If we look a little bit closer to the Spirit category very briefly, I just want to highlight the fact that we continue to outpace the market in almost all Spirit categories, not all of them, but most of them. That's really the advantage of Corby. With our diversified portfolio, we are across every price point, every consumer occasion, and that's for us very important. Now we are really playing across all the categories in Spirit, RTD, and Wine meaningfully. We are leveraging that with impact. I want to highlight, for example, in this quarter, we have some very successful launch with the limited edition of the Canada Day bottle of Polar Ice. Of course, the GPYS continues with its official whisky partner, the NHL, marked with a special Stanley Cup edition that honors the two Canadian icons, whisky and hockey.
We really played across the categories, and that enabled us to perform 3 points above the market, which is an outstanding performance. Now, before I hand over to Juan, I want also to take a moment to spotlight our RTD portfolio. As I mentioned, a very dynamic category, and therefore very strategic for us. While our overall portfolio has continued to gain value share over the last 12 months, driven by a strong innovation pipeline and strategic execution, our road-to-market strategy is a key advantage today, with ABG providing strategic reach in Ontario and Nude strengthening our presence in Western Canada. This has clearly helped accelerate growth across the overall RTD portfolio. Our innovation remains a core strength, Cottage Springs ranking among the top 2 RTD innovations in Ontario, with a steady pipeline supported, of course, by the ABG in-house innovation lab that we mentioned several times in the past.
The integration of Nude has progressed extremely well, supporting a more efficient and sustainable business model in the West. Expansion efforts and successful launches like Slappy’s in Western Canada have contributed to improved sales performance over the last six months. Without giving too much detail here, this has been an amazing acquisition for us, with basically a payback below one year. We bought this business, and we repaid fully this business within six, seven months, which is, of course, a very strong outcome. Lastly, in Ontario, we've been able to capitalize on the road-to-market modernization since September. As you know, with basically the possibility to sell now in grocery and convenience, we have been able to leverage the breadth and the depth of our RTD portfolio.
This has translated into strong momentum in grocery stores, where Cottage Springs was the number one RTD in the last quarter of the fiscal year, a clear signal that our consumer demand is strong for our portfolio. With that, let me pass over now to Juan to give you more detail about these strong commercial results translating into strong financial results as well.
Thank you, Nicolas, and good morning, everyone. I'm Juan Alonso, Corby's Chief Financial Officer. I'm pleased to walk you through our financial results. Very quickly, before we talk about our financial performance, you are going to notice some mentions of adjusted metrics and organic revenue growth. We believe that these non-IFRS financial measures support a better understanding of our underlying business performance and trends. We provided the detailed explanations for each of those elements in our Q4 FY 2025 MD&A, and I invite you to refer to this document for any questions related to it. Let me start with our Q4 results. Corby delivered CAD 72 million in revenue, representing +8% reported growth and +6% organic growth year-over-year.
This performance was supported by the strong momentum in our RTD portfolio, capitalizing on the road-to-market modernization in Ontario, and also the successful execution of our sales team, which helped us gain share in the Spirit market following the removal of U.S. products from shelves. Thanks to revenue growth and disciplined cost management, our adjusted EBITDA reached CAD 15.6 million, up 18% versus last year. Adjusted earnings per share came in at CAD 0.26 and reported earnings per share at CAD 0.22, reflecting remarkable growth of +37% and +30% respectively. We also delivered CAD 15.5 million in cash from operating activities in Q4, underscoring the strength of our earnings and working capital discipline. Lastly, in line with our Q3 declaration, the board approved a quarterly dividend of CAD 0.23 per share. That is a 10% increase over the same period, Q4 FY 2024.
This reflects our confidence in Corby's outlook and our ongoing commitment to shareholder returns. Now, let's turn our attention to the full-year performance. FY 2025 was a year of strategic RTD business expansion and financial resilience. In FY 2025, Corby generated CAD 246.8 million in revenue, a 7% increase over FY 2024, with +2% organic growth. This performance, achieved in a challenging retail environment, highlights the strength of our diversified portfolio and our agility in responding to market shifts. I will further delve into details in the next slide. With our top-line growth, as well as strategic investments behind key brands and diligent control of expenses, our adjusted EBITDA reached CAD 64 million, up +7%, and adjusted earnings per share were CAD 1.08, with reported earnings per share at CAD 0.96, representing a robust +15% growth in reported earnings and +7% in adjusted earnings. Our cash from operating activities totaled CAD 44.8 million in FY 2025.
That is a CAD 13.3 million increase year-over-year. This was supported by earnings growth, disciplined cost management, and the lapping of acquisition-related costs from ABG and Nude. We also strengthened our balance sheet, reducing our net debt to adjusted EBITDA ratio to 1.4x , down from 1.8x at the end of FY 2025. This reflects our strong solvency and financial discipline. Total dividends declared for FY 2025 were CAD 0.91 per share, up 7% from FY 2024, reinforcing our commitment to consistent and growing returns for our shareholders. Now, let's go in more detail on our year-to-date revenue growth. Firstly, domestic case goods reached CAD 197.3 million, reflecting now 1% organic growth and 9% total growth. This is highlighted by ABG brands growing 10% organically, supported by our dynamic RTD portfolio, capitalizing on the road-to-market modernization in Ontario and also business expansion into Western Canada.
Our case goods portfolio remained resilient despite the negative impact of the LCBO strike in Q1 and also soft underlying consumer trends. Commission revenue rose to CAD 30.6 million, or +15% versus the prior year, driven by imported RTDs and Wines successfully tapping into the opening of grocery and convenience channels across Ontario. Lastly, our export revenue totaled CAD 14.9 million, reflecting a 12% decline year-over-year. This decrease primarily comes from lapping the pipeline fuel to new markets last year, which had seen a remarkable +16% increase compared to the fiscal year 2023, and also some glass production issues for lambs in the U.K. These results highlight our ability to navigate and adapt to the evolving market landscape, and we remain committed to leveraging opportunities for growth.
To summarize our P&L results for FY 2025, Corby had solid revenue growth of 7%, bolstered by the strength of our portfolio, the new channel expansion in Ontario, and the full-year effect from the acquisition of Nude brands. Our total operating expenses increased by 6% at a slower pace compared to the growth in our revenue, with strategic investments behind key strategic brands and disciplined cost management. As a result, Corby delivered a solid growth of 7% in adjusted EBITDA, underscoring our ability to effectively manage costs while expanding our revenue base. On a per-share basis, our adjusted net earnings were CAD 1.08 and reported net earnings were CAD 0.96, reflecting growth of 7% and 15% respectively versus last year. Now, moving to the cash flow performance.
In FY 2025, Corby generated CAD 44.8 million of cash from operating activities, supported by higher net earnings, as well as favorable working capital changes, primarily driven by the timing of spend and favorability from interest and income tax. Our free cash flow turned positive and improved significantly year-over-year, benefiting from the lapping of last year's CAD 148 million cash outflow related to the ABG and Nude acquisition. As a result, our net debt position was CAD 91 million at the end of the year, a CAD 15 million improvement compared to FY 2024. Our net debt to adjusted EBITDA ratio reduced to 1.4x , demonstrating a robust solvency position and reinforced our financial health. Furthermore, Corby has an attractive dividend payout ratio at 57% on a rolling 12-month basis, highlighting the sustainability of the company's quarterly dividend.
Notably, quarterly dividend payment increased by 10% in Q4 FY 2024 compared to Q4 FY 2025, compared to Q4 FY 2024. These actions have contributed to a high dividend yield over recent years at 6.7% at the end of this fiscal year, marking a consistent improvement from FY 2023 and FY 2024. We are proud of our performance in FY 2025, and we remain focused on delivering long-term value for our stakeholders and shareholders. With a strong diversified portfolio, disciplined execution, and a clear strategy, Corby is well-positioned to continue driving growth and shareholder returns. Before I hand back to Nicolas , I just want to give you a glimpse of what is ahead for Corby in FY 2026.
We know the market will remain volatile in the next fiscal year, forecasted to remain in a slight decline, but we believe that if we continue to leverage our diversified portfolio, leading brands, local footholds, top-tier marketing activities, we are well-oriented to outperform the markets again in FY 2026. We will continue unlocking the full potential of our RTD portfolio, including the realization of ABG and Nude sales with operational synergies throughout a successful integration. Notably, we are going to address consumer needs and keep agility in our dynamic approach to successfully capitalize on the road-to-market modernization in Ontario. Also, revenue growth management and disciplined investment will remain a very important feature to protect our margins in a sustainable way. In addition, we are closely monitoring regulatory and trade changes, including the tariff situation between the U.S. and Canada.
We believe Corby is well-positioned to navigate the challenges ahead with our diversified portfolio, strong local footholds, and execution strategy. I will not dwell on our strategy since it was already well covered in the previous page, but just to remind that our goal remains to focus on sustainable growth and long-term value to our shareholders. I hand over back to Nicolas for some closing remarks.
Thank you very much, Juan. Very clear and effectively, we are very proud of our commercial and financial results this year. Before we open the floor to possible questions, I just want to close, as always, to what we see as being the key reason to invest in Corby. Corby remains the largest publicly listed multi-beverage alcohol company in Canada, and we strongly believe in the most diverse portfolio in the market. With that as well, our close partnership with Pernod Ricard gives us some strategic advantages and access to the global best practices and a fantastic portfolio. We have a clear strategy with strong execution and a proven ability to outpace the market in value growth. For us, it's remained the mantra of the company. Our innovation pipeline, marketing strength, and recent acquisition continue to drive performance and operational excellence. I mentioned a lot of the innovation.
It's also an obsession for us to drive growth. Finally, financially, we remain very consistent. We are in a business where we can deliver resilient revenue, strong cash flow. You saw the cash conversion and a healthy balance sheet that supports attractive and growing dividends, but also gives us some flexibility. With that, again, thank you very much for joining us today and for your continued support and interest with Corby. Juan and I are now happy, of course, to take any questions if any. Thank you very much.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, please press star one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star followed by the number two. One moment, please, for your first question. There are currently no questions at this time. I would like to turn it back to Mr. Krantz for closing remarks.
Thank you very much. Thank you for your attention today. We are Thursday. As I usually say, enjoy the rest of the week. The best way to get to know Corby i s to enjoy your product responsibly. I wish you a good weekend and to the next time. Thank you very much.
Thank you, presenters. Ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect.