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

Core Insights - Andrew Peller Limited reported strong financial results for the three and nine months ended December 31, 2025, highlighting top-line growth and margin expansion across various trade channels and regions [3][5]. Financial Highlights - Revenue for Q3 2026 was $108.8 million, a 3.3% increase from $105.4 million in Q3 2025 [6][5]. - Gross margin improved to 41.8% in Q3 2026 from 40.2% in the prior year, and for the nine months, it rose to 43.3% from 40.4% [6][8]. - EBITA for Q3 2026 was $19.7 million, up 6.1% from $18.5 million in Q3 2025, while for the nine months, it increased to $57.1 million from $49.4 million, a 15.6% rise [6][10]. - Net earnings for Q3 2026 were $7.9 million, compared to $7.7 million in Q3 2025, and for the nine months, net earnings grew to $21.4 million from $11.9 million [6][12]. Operational Insights - The increase in revenue was primarily driven by strong performance in Western Canada and growth in wine club sales, although there was some softness in owned retail stores [5][7]. - Selling and administrative expenses as a percentage of revenue increased to 23.7% in Q3 2026 from 22.6% in the prior year, reflecting higher investments in advertising and promotions [9]. - The Ontario Grape Support Program contributed significantly to margin improvements, adding $2.1 million and $6.6 million in the three and nine-month periods, respectively [8]. Debt and Financial Instruments - Interest expense decreased by 25.8% for Q3 2026 and 22.8% for the nine months, attributed to lower average debt levels and reduced interest rates [10]. - The company recorded a net unrealized non-cash gain of $0.9 million related to mark-to-market adjustments on financial instruments, compared to a loss of $1.2 million in the prior year [11].