Pernod Ricard deal bolsters Corby’s FY results

Despite a sales slump across its core portfolio, Canadian distributor Corby Spirit and Wine Limited is celebrating “strong” full year results, attributed to an increase in commission rates on Pernod Ricard brands.

Corby reported net earnings of US$9.3 million ($0.33 per share) for the three month period ending June 30 2016 – an improvement of US$2.0 million or 27% when compared with the same quarter last year.

On a full year basis, the firm saw net earnings grow US$5.0 million (25%) to US$25.4 million ($0.89 per share).

The deal with Corby  – of which Pernod Ricard owns a majority stake – saw the firm receive a negotiated increase in commission rates on Pernod Ricard brands, following the amendment of September 29, 2006 Canadian representation agreements.

The boost from the commission rate change was also supplemented by strong shipments for the Pernod Ricard brand portfolio.

While overall shipments of Corby-owned brands were lower year over year, the firm said that earnings impact was “more than offset” by decreased advertising and promotional investment in the US market as the firm endeavours to “refocus” its strategy.

Patrick O’Driscoll, president and chief executive officer of Corby, said: “I am pleased with Corby’s strong fourth quarter and full year earnings results which highlighted the importance of the Pernod Ricard portfolio while we revitalise and reposition our portfolio of owned brands towards more fertile growth segments.

“In particular it was pleasing to see the continued growth and acclaim around our premium craft Canadian whisky range both in Canada and international markets.”