Earnings release
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Andrew Peller Limited Reports Financial Results for Second Quarter of Fiscal 2026 GRIMSBY, Ontario, Nov. 04, 2025 -- Andrew Peller Limited (TSX: ADW.A / ADW.B) (“APL” or the “Company”) today announced results for the three and six months ended September 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated. SECOND QUARTER 2026 HIGHLIGHTS • Revenue was $105.5 million, compared with $109.2 million in Q2 2025; • Gross margin of 45.7%, up from 42.4% in the prior year; • EBITA increased by 18% to $21.3 million, from $18.0 million in Q2 2025; and • Net earnings improved to $8.9 million ($0.21 per Class A Share), compared to $4.6 million ($0.11 per Class A Share) in Q2 2025. YTD 2026 HIGHLIGHTS • Revenue was $204.7 million, compared with $208.7 million in the prior year; • Gross margin of 44.1%, up from 40.5% in the prior year; • EBITA increased 21% to $37.4 million, from $30.8 million in the prior year; • Net earnings grew to $13.5 million ($0.32 per Class A Share), compared to $4.2 million ($0.10 per Class A Share) in prior year; and • Dividend of $0.123 per Class A Share and $0.107 per Class B Share. “It was a strong second quarter, highlighted by significant year-over-year growth in our margins, earnings and cash flow, and further strengthening of our balance sheet,” said Paul Dubkowski, Chief Executive Officer. “Our year-over-year sales performance reflects the significant positive benefit from the LCBO strike in last year’s second quarter. Excluding the impact of this, our second-quarter sales increased over the prior year, led by solid results from key channels across the country, including liquor boards, grocery, big-box stores and the estate properties. Looking ahead, we are well positioned to continue growing market share in our core wine businesses while also building on our success to date in high-growth product segments and new sales channels in the Ontario market.” Financial Highlights (Financial Statements and the Company’s Management Discussion and Analysis for the period can be obtained on the Company’s web site at ir.andrewpeller.com) For the three and six months ended September 30,Three months Six months (in $000, except per share amounts) 2025 2024 2025 2024 Revenue $105,502 $109,238 $204,686 $208,703 Gross margin(1) 48,255 46,327 90,287 84,506 Gross margin (% of revenue) 45.7% 42.4% 44.1% 40.5% Selling and administrative expenses 26,966 28,348 52,877 53,668 EBITA(1) 21,289 17,979 37,410 30,838 Interest expense 3,091 4,319 6,993 8,899 Net unrealized (gain) loss on derivative financial instruments (574) 1,513 (557) 1,731 Other expenses, net 454 912 893 1,208 Net earnings 8,938 4,560 13,491 4,185 Earnings per share – Class A basic $0.21 $0.11 $0.32 $0.10 Earnings per share – Class B basic $0.19 $0.10 $0.28 $0.09 Dividend per share – Class A $0.123 $0.123 Dividend per share – Class B $0.107 $0.107 (1) Please refer to the Company’s MD&A concerning “Non-IFRS Measures” Financial Review Revenue for the three months ended September 30, 2025 decreased by 3.4% compared to the same period in the prior year and by 1.9% on a year-to-date basis compared to prior year. A decrease in revenue in the quarter was expected, as the second quarter of fiscal 2025 included an increase in sales due to the LCBO strike in July 2024. This was partially offset by strong performance in several of the Company’s well-established trade channels, specifically in western Canada, driven by the success of the BC replacement program, in grocery and big-box stores as the Ontario retail market continues to evolve, and at the Company’s estate properties as traffic continues to improve. On a year to date basis, there has also been some softness in sales from the Company’s personal winemaking business.
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Gross margin as a percentage of revenue increased to 45.7% from 42.4% for the three months ended September 30, 2025, and to 44.1% from 40.5% for the six months ended September 30, 2025. The improvement was driven by lower costs for glass bottles and inbound freight, resulting from the Company’s ongoing cost savings programs. Additionally, margin improved due to the Ontario Grape Support Program (“OGSP”) which contributed $2.4 million and $4.5 million in the three and six-month periods ended September 30, 2025, respectively. This program was not in effect during the comparable periods in fiscal 2025. As a percentage of revenue, selling and administrative expenses improved to 25.6% for the three months ended September 30, 2025, compared to 26.0% in the prior year period. The improvement was primarily driven by a reduction in compensation expense resulting from cost savings realized through the Company’s restructuring initiatives. For the six months ended September 30, 2025, selling and administrative expenses as a percentage of revenue remained consistent with the prior year period. Earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other expenses, and income taxes (“EBITA”) (see “Non-IFRS Measures” section of this MD&A) was $21.3 million in the second quarter of fiscal 2026, compared to $18.0 million in the second quarter of prior year, an increase of 18.4%. EBITA increased to $37.4 million from $30.8 million for the six months period ended September 30, 2025, an increase of 21.3% compared to prior year. Interest expense for the three and six months ended September 30, 2025 decreased by 28.4% and 21.4% respectively, compared to prior year, due to lower average debt levels and reduced interest rates. The Company recorded a net unrealized non-cash gain in the first six months of fiscal 2026 of $0.6 million related to mark-to- market adjustments on interest rate swaps and foreign exchange contracts compared to a loss of $1.7 million in prior year. The Company has elected not to apply hedge accounting and accordingly the change in fair value of these financial instruments is reflected in the Company’s consolidated statement of earnings each reporting period. These instruments are considered to be effective economic hedges and are expected to mitigate the short-term volatility of changing foreign exchange and interest rates. The Company generated net earnings of $8.9 million ($0.21 per Class A share) for the second quarter of fiscal 2026 compared to $4.6 million ($0.11 per Class A share) in the second quarter of the prior year and net earnings of $13.5 million ($0.32 per Class A share) for the six months ended September 30, 2025 compared to $4.2 million ($0.10 per Class A share) in the prior year. As part of its strategy to recognize value from non-core assets, during the second quarter of fiscal 2026, the Company sold land, vineyard, and building assets in Kaleden, British Columbia with a net book value of $1.0 million for net proceeds of $1.2 million. Investor Conference Call The Company will hold a conference call to discuss the results on Wednesday, November 5, 2025 at 10:00 a.m. ET. Paul Dubkowski, CEO, Renee Cauchi, CFO and Patrick O’Brien, President and CCO, will host the call, with a question and answer period following management’s presentation. Conference Call Dial In Details: Date: Wednesday, November 5, 2025 Time: 10:00 a.m. (ET) Dial-in numbers: Local Toronto / International: (437) 900-0527 North American Toll Free: (888) 510-2154 RapidConnect: https://emportal.ink/4o7wRBh Webcast: A live webcast will be available at ir.andrewpeller.com Replay: Following the live call, a recording will be available on the Company’s investor relations website at ir.andrewpeller.com About Andrew Peller Limited Andrew Peller Limited is one of Canada’s leading producers and marketers of quality wines and craft beverage alcohol products. The Company’s award-winning premium and ultra-premium Vintners’ Quality Alliance brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, and Gray Monk Estate Winery. Complementing these premium brands are a number of popularly priced varietal offerings, wine-based liqueurs, craft ciders, and craft spirits. The Company owns and operates 101 well-positioned independent retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names. The Company also operates Andrew Peller Import Agency and The Small Winemaker’s Collection Inc., importers and marketing agents of premium wines from around the world. With a focus on serving the needs of all wine consumers, the Company produces and markets premium personal winemaking products through its wholly owned subsidiary, Global Vintners Inc., the recognized leader in personal winemaking products. More information about the Company can be found at ir.andrewpeller.com. The Company utilizes EBITA (defined as earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes) to measure its financial performance. EBITA is not a recognized measure under IFRS. Management believes that EBITA is a useful supplemental measure to net earnings, as it provides readers with an indication of earnings available for investment prior to debt service, capital expenditures, and income taxes, as well as provides an indication of recurring earnings compared to prior periods. Readers are cautioned that EBITA
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should not be construed as an alternative to net earnings determined in accordance with IFRS as indicators of the Company’s performance or to cash flows from operating, investing, and financing activities as a measure of liquidity and cash flows. The Company also utilizes gross margin (defined as sales less cost of goods sold, excluding amortization). The Company’s method of calculating EBITA and gross margin may differ from the methods used by other companies and, accordingly, may not be comparable to measures used by other companies. Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols ADW.A and ADW.B). FORWARD-LOOKING INFORMATION Certain statements in this news release may contain “forward-looking statements” within the meaning of applicable securities laws including the “safe harbour provisions” of the Securities Act (Ontario) with respect to APL and its subsidiaries. Such statements include, but are not limited to, statements about the growth of the business; its launch of new premium wines and craft beverage alcohol products; sales trends in foreign markets; its supply of domestically grown grapes; and current economic conditions. These statements are subject to certain risks, assumptions, and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. The words “believe”, “plan”, “intend”, “estimate”, “expect”, or “anticipate”, and similar expressions, as well as future or conditional verbs such as “will”, “should”, “would”, “could”, and similar verbs often identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. With respect to forward-looking statements contained in this news release, the Company has made assumptions and applied certain factors regarding, among other things: future grape, glass bottle, and wine and spirit prices; its ability to obtain grapes, imported wine, glass, and other raw materials; fluctuations in foreign currency exchange rates; its ability to market products successfully to its anticipated customers; the trade balance within the domestic Canadian and international wine markets; market trends; reliance on key personnel; protection of its intellectual property rights; the economic environment; the regulatory requirements regarding producing, marketing, advertising, and labelling of its products; the regulation of liquor distribution and retailing in Ontario; the application of federal and provincial environmental laws; and the impact of increasing competition. These forward-looking statements are also subject to the risks and uncertainties discussed in this news release, in the “Risks and Uncertainties” section and elsewhere in the Company’s MD&A and other risks detailed from time to time in the publicly filed disclosure documents of Andrew Peller Limited which are available at www.sedarplus.com. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and assumptions which could cause actual results to differ materially from those conclusions, forecasts, or projections anticipated in these forward-looking statements. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. The Company’s forward-looking statements are made only as of the date of this news release, and except as required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information, future events or circumstances or otherwise. For more information, please contact: Craig Armitage ir@andrewpeller.com Source: Andrew Peller Limited