Core Viewpoint - Andrew Peller Limited reported strong financial results for fiscal 2025, highlighting growth in revenue, gross margins, and net earnings, while adapting to changes in Ontario's distribution landscape and government support for the wine industry [3][5][8]. Financial Highlights - Revenue for the year ended March 31, 2025, was $389.6 million, an increase of 1.0% from $385.9 million in the prior year [5][8]. - Gross margin for the year was 42.8%, up from 39.0% in the previous year, driven by lower costs and the Ontario Grape Support Program [5][9]. - EBITA increased by 25.0% to $62.9 million for the year, compared to $50.3 million in fiscal 2024 [5][11]. - Net earnings for the year were $11.1 million ($0.26 per Class A Share), a significant improvement from a net loss of $2.9 million in the prior year [5][16]. Quarterly Performance - For the fourth quarter of fiscal 2025, revenue was $75.5 million, down 11.2% from $85.0 million in Q4 2024, primarily due to timing issues related to the Easter holiday and revenue recognition from the Ontario VQA Support Program [7][8]. - Gross margin for Q4 was 52.6%, compared to 41.8% in the same quarter of the previous year, largely due to the inclusion of support from the Ontario Grape Support Program [5][9]. - EBITA for Q4 increased by 46.0% to $13.5 million, up from $9.3 million in Q4 2024 [5][11]. - The net loss for Q4 improved to $0.7 million (loss of $0.02 per Class A Share), compared to a loss of $6.9 million in Q4 2024 [5][16]. Cost Management - Selling and administrative expenses as a percentage of revenue decreased to 34.7% for Q4 and 26.6% for the year, down from 42.1% and 28.4% respectively in the prior year [10]. - The company achieved $10.7 million in cost savings for the year, up from $9.3 million in 2024, through various cost-saving programs [9]. Market Dynamics - The increase in revenue was attributed to sales to big box stores, while retail store sales declined in the second half of the fiscal year due to new distribution guidelines in Ontario [8]. - The company noted a strong performance in sales to third-party restaurants and hospitality locations, although estate winery and wine club sales faced challenges due to reduced consumer spending [8]. Government Support - The company expressed support for recent Ontario government policies that benefit the grape and wine industry, viewing them as a key driver of economic growth [3].