Corby Distilleries Q2 profits move higher after asset dispositions

TORONTO - Liquor producer Corby Distilleries Ltd. (TSX:CDL.A) reported Wednesday a second-quarter profit of $27.1 million, up from year-earlier $9.8 million on a big one-time gain from the sale of a Montreal plant.

The Toronto-based maker of such brands as Wiser's Canadian whisky, Lamb's rum, Polar Ice vodka and McGuinness liqueurs said its earnings amounted to 95 cents per share, compared with 34 cents in the same period a year earlier.

It earnings during the period were boosted by a $17.7-million gain related to its sale last October of a manufacturing and bottling plant as well as 17 of its brands for about $32.9 million to Sazerac Companies Inc.

Revenues were down 10 per cent to $40.9 million after the effect of the plant sale and its earlier sale of the Seagram Coolers brand.

However, stripping out the effect of dispositions and one-time items, Corby said its net earnings would have risen by 10 per cent and revenue was up three per cent as shipments grew by two per cent.

"We are pleased to report a like-for-like net earnings increase while continuing to significantly increase investment in advertising and promotional support behind key brands, thus building a platform for long-term growth," president and CEO Patrick O'Driscoll said in a statement.

"Corby is well-positioned for sustained growth through continued investment in priority brands, specialization in our route to market and a steady pipeline of new product innovations."

Corby's board declared a dividend of 15 cents per share payable on March 15 to shareholders of record as at the close of business on Feb. 29.

Shares in the company were down a penny at $15.94 in morning trading on the Toronto Stock Exchange.