Andrew Peller (ADW) investor relations material

Executive summary

• Q1 revenue was $99.2M, stable year-over-year, with strong margin, profitability, and free cash flow, and a 25% increase in EBITDA/EBITA.

• Domestic wine volume and western Canada/big box channels offset declines in agency, personal winemaking, and Ontario retail.

• Strategic focus on cost savings, operational efficiencies, and adapting to evolving retail channels drove results.

• Net income improved to $4.6M from a net loss of $0.4M in Q1 2025.

• Sale of a non-core BC land asset for $1.3M completed, supporting balance sheet strength and future growth.

Financial highlights

• Sales were $99.2M, nearly flat year-over-year, with growth in Ontario grocery and big box retail channels.

• Gross margin rose to 42.4% from 38.4%, aided by lower input costs and a $2.1M Ontario Grape Support Program.

• EBITDA/EBITA increased 25% to $16.1M from $12.9M, driven by margin gains and cost savings.

• Net income: $4.6M ($0.11 per Class A share) vs. net loss of $0.4M ($0.01 loss per share).

• Interest expense decreased by nearly 15% due to lower debt and interest rates.

Outlook and guidance

• Well positioned to benefit from sustained growth in domestic wine consumption and expanded retail distribution.

• Anticipates continued margin and profitability improvements through cost savings and operational focus.

• Optimistic about the 2025 harvest, with strong prospects in Ontario and improving conditions in the West.

• Management aims for sustained long-term value through above-category sales and EBITA growth.