A low comparative saw Corby Distilleries H1 net profits soar, but the period proved tough for the Pernod Ricard subsidiary

A low comparative saw Corby Distilleries H1 net profits soar, but the period proved tough for the Pernod Ricard subsidiary

Corby Distilleries has seen a year-earlier impairment charge help boost its first-half net profits, as sales and operating profits dipped in the period.

The Canadian company, which is Pernod Ricard's subsidiary in the country, said yesterday (9 February) that operating profits in the six months to the end of December came in 6% down on a year earlier, at CAD25.3m (US$25.4m). Sales for the half-year dipped by 3% to CAD77.6m, while net profits came in 90% up on H1 2009-2010 at CAD18.2m.

A year ago, Corby confirmed that its net profits in the six months to the end of December 2009 had been hammered by a one-off impairment charge of CAD11.5m relating to a fall in value of its Seagram Coolers brand.

For the quarter to the end of December, operating profits decreased by 12% to CAD12.9m, with sales slipping by 5% to CAD40.4m. Including the prior-year impairment charge, net profits in the three-month period were up by 736% to CAD9.2m.

Brands-wise, Corby saw its Wiser's Canadian whisky produce value and volume increases in the half-year of 3% and 1% respectively. For both the half-year and the quarter, however, the portfolio as a whole saw value and volume fall.

“Corby's second quarter shipment performance lagged behind the prior year,” the company said. “Such differential is believed to be more a result of shifts in customer order patterns between the first and second quarters as domestic shipments over six months are more in-line with retail volumes.

“As such, year-to-date shipment volumes and value decreased 5% and 2%, respectively, when compared with the same six-month period last year.”

To read the official release, click here.