Andrew Peller Limited Reports Financial Results for Fourth Quarter and Fiscal Year 2026

GRIMSBY, Ontario, June 16, 2026 (GLOBE NEWSWIRE) -- Andrew Peller Limited (TSX: ADW.A / ADW.B) (“APL” or the “Company”) announced today results for the three and 12 months ended March 31, 2026. All amounts are expressed in Canadian dollars unless otherwise stated.

FOURTH QUARTER 2026 HIGHLIGHTS

• Revenue was $79.5 million, up from $75.5 million in Q4 2025;
• Gross margin of 52.2%, compared with 52.6% in the prior year;
• EBITA increased to $15.1 million from $13.5 million in Q4 2025; and
• Net earnings were $5.7 million ($0.14 per Class A Share), compared to a loss of $0.7 million (loss of $0.02 per Class A Share) in Q4 2025.

FISCAL 2026 HIGHLIGHTS

• Revenue was $393.0 million, up 0.9% from $389.6 million in the prior year;
• Gross margin of 45.1%, up from 42.8% in the prior year;
• EBITA grew by 14.7% to $72.1 million, from $62.9 million in 2025; and
• Net earnings increased to $27.1 million ($0.64 per Class A Share), from $11.1 million ($0.26 per Class A Share) in 2025.

“We closed fiscal 2026 with a strong fourth quarter, reflecting continued share gains in our core wine business, solid performance in Western Canada and Ontario, and ongoing growth in our innovation portfolio,” said Paul Dubkowski, Chief Executive Officer. “Our focus on disciplined execution drove margin expansion, improved profitability and continued cash generation, further strengthening our balance sheet. Looking ahead, we remain well positioned to build on this momentum through targeted investments that support growth in both our core brands and emerging, higher-growth segments, while continuing to support a strong and growing domestic wine industry.”

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)

⁽¹⁾Please refer to the Company’s MD&A concerning “Non-IFRS Measures”

Financial Review 
Revenue for the three months ended March 31, 2026 increased 5.2% compared to the fourth quarter of the prior year. The increase is primarily driven by strong sales to liquor boards and big box stores in Eastern Canada. In addition, the timing of the Easter holiday season relative to fiscal 2025 contributed positively to the fourth quarter fiscal 2026 results. This was partially offset by softness in the Company’s personal winemaking business.

Revenue for the year ended March 31, 2026 increased 0.9% compared to the prior year as the Company was able to offset the benefit from the LCBO strike in the second quarter of fiscal 2025. The Company’s strong performance was driven by continued positive contribution from sales to liquor boards across the country and big box stores in Ontario. Several of the Company’s other well-established trade channels performed well during the year, particularly sales to third party restaurants and hospitality locations. In addition, sales at the Company’s estate properties increased due to higher guest traffic. This was partially offset by expected softness in the Company’s retail stores, as well as some softness in the personal winemaking business.

Gross margin as a percentage of revenue for the three months ended March 31, 2026 decreased slightly to 52.2% from 52.6%. The fourth quarter of fiscal 2025 benefited from the inclusion of $9.8 million related to the full year’s benefit of the Ontario Grape Support program. For fiscal 2026, the benefit of the program was recognized as eligible sales were made throughout the year. Gross margin for the fourth quarter of fiscal 2026 was positively impacted by favourable channel and product mix, as well as operating efficiencies and component cost savings. For the year ended March 31, 2026, gross margin as a percentage of revenue increased to 45.1% from 42.8%. The increase can be attributed to cost savings on inputs as well as favourable channel and product mix.

As a percentage of revenue, selling and administrative expenses decreased to 33.3% for the three months ended March 31, 2026, compared to 34.7% in the prior year. For the year ended March 31, 2026, selling and administrative expenses as percentage of revenue increased to 26.8% from 26.6%. The increase is primarily attributed to investments made in advertising and promotion for innovation and to serve the evolving Ontario retail market.

Earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other expenses, net, and income taxes (“EBITA”) (see “Non-IFRS Measures” section of this MD&A) was $15.1 million in the fourth quarter of fiscal 2026, compared to $13.5 million in the fourth quarter of prior year. EBITA increased to $72.1 million for the year ended March 31, 2026 compared to $62.9 million in prior year period.

Interest expense for the three months and year ended March 31, 2026 has decreased by 15.5% and 21.4% respectively compared to the prior year due to lower average debt levels and lower interest rates in fiscal 2026 compared to prior year.

The Company generated net earnings of $5.7 million ($0.14 per Class A share) for the fourth quarter of fiscal 2026 compared to a net loss of $0.7 million (loss of $0.02 per Class A share) in the fourth quarter of the prior year. For the year ended March 31, 2026, the Company generated net earnings of $27.1 million ($0.64 per Class A share) compared to net earnings of $11.1 million ($0.26 per Class A Share) in the prior year.

Subsequent Event: Definitive Agreement to be Acquired by Fairfax Financial Holdings Limited
On June 15, 2026, the Company entered into a definitive arrangement agreement with 18013632 Canada Inc., a newly-formed and wholly-owned subsidiary of Fairfax Financial Holdings Limited, and Fairfax Financial Holdings Limited, in respect of a transaction whereby all of the issued and outstanding Class A Non-Voting shares and Class B Voting shares of the Company will be acquired by 18013632 Canada Inc. pursuant to a plan of arrangement under the Canada Business Corporations Act (the “Arrangement”). Completion of the Arrangement is subject to customary conditions, including, among others, court approval, regulatory approvals, and the requisite shareholder approvals​.

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 expenses, net 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 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.ca. 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

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