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ANDREW PELLER ― LIMITED - Andrew Peller Limited Reports Strong Revenue and Earnings in Fiscal 2021 GRIMSBY , Ontario , June 16 , 2021 ( GLOBE NEWSWIRE ) -- Andrew Peller Limited ADW.A / ADW.B ( " APL " or the " Company " ) announced strong revenue and earnings for the year ended March 31 , 2021 . FISCAL 2021 HIGHLIGHTS : • Sales up 2.8 % from last year on resiliency of diversified trade channel network and launch of new e - commerce platform ; Gross margin impacted by change in sales mix due to COVID - 19 pandemic ; • • Selling and administration expenses decreased due to reduced spending as a result of the pandemic ; • EBITA increased to $ 63.0 million from $ 61.5 million last year ; • Net earnings increased to $ 27.8 million from $ 23.5 million last year ; Acquired the assets of the Riverbend Inn and Vineyard in Niagara - on - the - Lake for $ 10.0 million ; and • Increased common share dividends by 10 % . " We performed well operating through a full year of the COVID - 19 pandemic with sales growth despite the restrictions imposed by lockdowns and restricted travel and , most importantly , increased net earnings for our shareholders , " commented John Peller , President and Chief Executive Officer . " Looking ahead , as vaccine programs continue to accelerate across the country , we are confident we will soon be seeing more markets opening and a return to our traditional track record of delivering quality and value across all of our well - developed trade channels . " Strong Operating Performance Sales for the year ended March 31 , 2021 increased 2.8 % to $ 393.0 million compared to the prior year . Due to the COVID - 19 pandemic consumer purchasing patterns changed , resulting in an increase in sales through the Company's new e - commerce platform , at provincial liquor stores and other retail channels . Partially offsetting this increase was a reduction in hospitality and licensee sales due to COVID - 19 closures and lower duty - free export sales due to restricted travel . When the pandemic was announced in March 2020 , the Company saw an increase in sales as a result of higher consumer purchases due to uncertainty around trade channels for alcoholic beverages remaining open . Furthermore , given the pandemic was not announced until March 2020 , it had minimal impact on the Company's sales channels during fiscal 2020. In the fourth quarter of fiscal 2021 , sales in hospitality and licensee channels decreased , due to COVID - 19 closures and duty - free export sales decreased due to restricted travel when compared to the fourth quarter of fiscal 2020. These decreases were partially offset by an increase in sales from the Company's new e - commerce platform , at provincial liquor stores and other retail channels . As a result of these factors , sales for the three months ended March 31 , 2021 declined to $ 79.1 million from $ 82.1 million in the fourth quarter of fiscal 2020. Management believes the diversified nature of its well - established network of trade channels will generate a return to sustained sales growth as the pandemic eases . Gross margin as a percentage of sales was 35.5 % and 39.8 % for the three months and year ended March 31 , 2021 , respectively , compared to 43.3 % and 43.5 % in the prior year . Gross margin in fiscal 2021 has declined as a result of higher imported wine costs , an increase in consumption of lower margin products , revenue declines in higher margin trade channels , increased distribution costs resulting from the new e - commerce platform , and increased co - packing costs related to the Company's growing refreshment beverage categories . The Company expects margins to improve in post COVID - 19 periods . Selling and administrative expenses were lower in fiscal 2021 compared to the prior year due to a deliberate effort to conserve cash resources by temporarily reducing advertising and promotional spending and staffing levels during the COVID - 19 pandemic . As a percentage of sales , selling and administrative expenses were reduced to 23.8 % compared to 27.4 % in the prior year . Going forward , as the pandemic eases and activity in the hospitality and licensee channels increases , and the Company invests in growth opportunities , selling and administrative expenses will increase as a percentage of sales compared to the fiscal year ended 2021. During the fourth quarter of fiscal 2021 the Company began to increase staffing and marketing expenses in preparation for the return to more normal markets as the impact of the COVID - 19 pandemic eases . As these expenses were incurred before the majority of government - mandated closures were lifted , the Company is expecting selling and administrative expenses as a percentage of sales to decrease in future quarters when compared to the fourth quarter of 2021 . Earnings before interest , amortization , net unrealized gains and losses on derivative financial instruments , gain on debt modification and deferred financing fees , other ( income ) expenses , and income taxes ( " EBITA " ) for the three months and year ended March 31 , 2021 were $ 1.8 million and $ 63.0 million compared to $ 9.7 million and $ 61.5 million in the prior year . Net earnings for the year ended March 31 , 2021 were $ 27.8 million ( $ 0.65 per Class A Share ) , up from $ 23.5 million ( $ 0.55 per Class A Share ) in the prior year . Included in net earnings in fiscal 2021 was a one - time non - cash gain of $ 2.3 million on the amendment and restatement of the Company's debt ( see below ) . For the three months ended March 31 , 2021 the Company incurred a loss of $ 6.3 million ( $ 0.15 per Class A Share ) compared to a loss of $ 1.0 million ( $ 0.02 per Class A Share ) in the prior year's fourth quarter . COVID - 19 Pandemic After the announcement of the COVID - 19 pandemic , Canadian businesses selling beer , wine and other alcohol products were deemed essential services , as well as those businesses that supply them . Under this provision , all of the Company's