Andrew Peller (ADW) investor relations material

Executive summary

• Revenue for Q4 2026 rose 5.2% year-over-year to $79.5 million, with annual revenue up 0.9% to $393.0 million.

• Net earnings for Q4 2026 reached $5.7 million, reversing a loss in Q4 2025; annual net earnings increased to $27.1 million from $11.1 million.

• Growth driven by strong sales to liquor boards, big box stores, and hospitality channels, with some softness in retail and personal winemaking.

• Gross margin improved annually to 45.1% from 42.8%, aided by cost savings and favorable mix.

• A definitive agreement was signed for acquisition by Fairfax Financial Holdings Limited.

Financial highlights

• Q4 2026 EBITA increased to $15.1 million from $13.5 million year-over-year; annual EBITA up 14.7% to $72.1 million.

• Q4 gross margin was 52.2%, slightly down from 52.6% due to timing of government support program recognition.

• Interest expense declined 15.5% in Q4 and 21.4% annually due to lower debt and rates.

• Selling and administrative expenses as a percentage of revenue decreased in Q4 but rose slightly for the year due to increased advertising and promotion.

Outlook and guidance

• Management expects to build on momentum with targeted investments in core and emerging brands.

• Focus remains on disciplined execution, margin expansion, and supporting the domestic wine industry.