Andrew Peller Limited Reports Financial Results for Third Quarter of Fiscal 2026

Executive Summary

• Andrew Peller Limited reported Q3 2026 revenue of $108.8 million, a 3.3% year-over-year increase, driven by strong performance in Western Canada and wine club sales, partially offset by softness in owned Ontario retail stores.
• Year-to-date net earnings nearly doubled to $21.4 million ($0.50 per Class A share) compared to $11.9 million in the prior year, with gross margin expanding to 43.3% and EBITA rising 15.6% to $57.1 million.
• The Company declared quarterly dividends of $0.185 per Class A share and $0.161 per Class B share, and will host an investor conference call on February 11, 2026.

Key Details

• Q3 2026 Financials: Revenue of $108.8 million (+3.3% YoY); Gross margin of 41.8% (+1.6 percentage points); EBITA of $19.7 million (+6.1%); Net earnings of $7.9 million; EPS of $0.18 (Class A) and $0.16 (Class B).
• YTD 2026 Financials: Revenue of $313.5 million (flat YoY); Gross margin of 43.3% (+2.9 percentage points); EBITA of $57.1 million (+15.6%); Net earnings of $21.4 million; EPS of $0.50 (Class A) and $0.44 (Class B).
• Dividends: Declared $0.185 per Class A share and $0.161 per Class B share.
• Margin Drivers: Gross margin expansion driven by lower input costs (glass bottles, inbound freight) from ongoing cost savings programs, partially offset by higher distribution costs for the evolving Ontario retail market. The Ontario Grape Support Program (OGSP) contributed $2.1 million in Q3 and $6.6 million YTD.
• Operating Expenses: Selling and administrative expenses increased to 23.7% of revenue (Q3) and 25.1% (YTD) due to higher advertising and promotion investments for innovation and Ontario retail market adaptation.
• Interest & Derivatives: Interest expense decreased 25.8% (Q3) and 22.8% (YTD) due to lower average debt levels and reduced interest rates. Recorded a net unrealized non-cash gain of $0.9 million YTD on interest rate swaps and foreign exchange contracts.
• Conference Call: Scheduled for Wednesday, February 11, 2026, at 10:00 a.m. ET, hosted by CEO Paul Dubkowski, CFO Renee Cauchi, and President/CCO Patrick O’Brien. Dial-in and webcast details provided via ir.andrewpeller.com.

Notable Quotes

• “Highlighted by top-line growth and continued expansion in our margins and earnings, it was another strong quarter for the Company. These results reflect positive trends across multiple trade channels and regions, including a strong quarter in Western Canada and sustained momentum in emerging channels in Ontario,” said Paul Dubkowski, Chief Executive Officer. “With our strong balance sheet and continued momentum, we are making targeted investments in growth aimed at continuing to gain share in core markets, while positioning the Company for success in high-growth product segments.”