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ANDREW PELLER ― LIMITED - Andrew Peller Limited Reports Results For First Quarter Fiscal 2022 GRIMSBY , Ontario , Aug. 04 , 2021 ( GLOBE NEWSWIRE ) -- Andrew Peller Limited ADW.A / ADW.B ( " APL " or the " Company " ) announced today its results for the three months ended June 30 , 2021 . FIRST QUARTER FISCAL 2022 : • Sales decreased by 6.1 % when compared to the first quarter of fiscal 2021 due to changes in consumer purchasing patterns as a result of the COVID - 19 pandemic ; • Gross margin impacted by change in sales mix and higher raw materials costs ; • Selling and administration expenses increased in preparation of re - opening in key markets ; • Estate winery properties returned to full operation late in the quarter , including the recently acquired Riverbend Inn and Vineyard , which reopened on June 19 , 2021 ; and • 10 % increase in common share dividends announced in June 2021 . " Our business this quarter was affected by a number of unusual market forces resulting from the COVID - 19 pandemic , including significant increases in consumer purchasing in the early months of the pandemic last year over concerns about trade channels remaining open , a COVID - related change in sales mix , and other factors that we expect will ease as vaccinations continue to roll out , " commented John Peller , President and Chief Executive Officer . " Comparing our sales this quarter with sales in the first quarter of fiscal 2020 , we generated reasonable growth after adjusting for pandemic - related impacts . " " Looking ahead , over the longer term , we believe our sales will grow and margins will strengthen as our markets return to more normal conditions for hospitality , licensee and export channels and we capitalize on our strong reputation for delivering quality and value . Our nine estate winery properties in Ontario and the Okanagan Valley are now fully open , and we re - opened the recently acquired Riverbend Inn to guests . We look forward to these properties making a strong and growing contribution to our results in the quarters ahead , " Mr. Peller concluded . Sales for the three months ended June 30 , 2021 were $ 92.4 million , down 6.1 % from the prior year . 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 . Additionally , provincial liquor stores in Ontario were closed on Mondays through much of the first quarter of fiscal 2021 , resulting in an increase in sales at our retail locations . As these conditions are no longer present , sales through provincial liquor boards and our retail locations have normalized when compared to prior year . The Company's sales in hospitality , licensee and export channels remained impacted in the first quarter of fiscal 2022 due to government - mandated closures and restricted international travel . Many of these restrictions were lifted during June of fiscal 2022 , and as a result , the Company expects sales in these channels to increase when compared to fiscal 2021 . Gross margin as a percentage of sales was 40.3 % for the three months ended June 30 , 2021 compared to 43.4 % in the prior year . Gross margin in the first quarter of fiscal 2022 declined due to revenue declines in high margin trade channels , increased distribution costs , higher imported wine costs and increased co - packing costs related to the Company's new and growing refreshment beverage categories . Management expects margins to strengthen over the long term as the Company's businesses return to more normal operations as the pandemic eases . Selling and administrative expenses increased for the first three months of fiscal 2022 as the Company increased staffing and marketing expenses in preparation for more normal markets returning as the impact of the COVID - 19 pandemic eases . During the first quarter of fiscal 2021 , the Company laid off a significant part of its workforce due to government - mandated closures and reduced advertising and promotional spending to conserve cash in response to the pandemic . In addition , during the first quarter of fiscal 2022 certain start - up costs were incurred related to the recently acquired Riverbend Inn and Vineyard which opened on June 19 , 2021. As a percentage of sales , selling and administrative expenses were 27.4 % through the first three months of fiscal 2022 compared to 20.5 % in the prior year . Going forward , as the pandemic eases and activity in the hospitality , licensee and export channels increases , the Company expects selling and administrative expenses will increase in fiscal 2022 compared to fiscal 2021 . Earnings before interest , amortization , net unrealized gains and losses on derivative financial instruments and deferred financing fees , other ( income ) expenses , and income taxes ( " EBITA ” ) were $ 11.9 million for the three months ended June 30 , 2021 compared to $ 22.6 million in the prior year . The decline in EBITA in fiscal 2022 is due primarily to the lower sales , reduced gross margin and higher administrative and selling expenses compared to the prior year . Net earnings for the three months ended June 30 , 2021 were $ 3.3 million or $ 0.08 per Class A Share compared to $ 11.2 million or $ 0.26 per Class A Share in the prior year . With the announcement of the start of the COVID - 19 pandemic in March 2020 , 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 the Company's production facilities , retail locations and retail estate locations have remained open with enhanced protocols relating to cleanliness and physical distancing . The continuing pandemic and its impact on consumer purchasing patterns , possible supply chain disruptions or further government - mandated closures could impact the Company's operations and