Andrew Peller Stock Earnings Reports

Andrew Peller Limited reported a solid fiscal 2025 with revenue up modestly (+1% to $389.6M) despite a down Q4 driven largely by timing changes related to Ontario support programs and channel shipment timing. The company delivered meaningful margin expansion (gross margin 42.8% including the Ontario Grape Support Program (OGSP); 40.3% excluding OGSP), completed a $20M cost-savings program, and grew EBITDA to $62.9M (up 25% year-over-year). Cash from operations strengthened to $60.2M, net debt was reduced to $182.4M (debt/EBITDA just under 3x), and available revolver capacity is ~ $68M. Management highlighted strong brand momentum (Trius, Gretzky, Peller Family Vineyards), successful expansion into new Ontario retail points (big box, grocery), and continued investments to support increased domestic grape content (including ~1M L additional storage in Grimsby). Near-term items: Q4 recognized a $9.8M OGSP allocation for FY2025 (booked in Q4 as a full-year allocation), management expects to begin recognizing OGSP quarterly going forward with cash receipts roughly a quarter in arrears and believes the program supports higher long-term gross margins (management targets run-rate margins >42.5%). FY2026 guidance items: normal run-rate CapEx of ~$15–17M, potential continued growth in domestic demand / staycations boosting estate visitation over summer, and an active but timing-dependent process to sell the Port Moody property.