Andrew Peller (ADW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $99.2 million, stable year-over-year, with strong performance in western Canada and big box channels offsetting softness in Ontario retail and personal winemaking.

• EBITDA increased 25.4% to $16.1 million, driven by margin expansion, cost savings, and operational efficiencies.

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

• Domestic wine volume grew as consumers favored Canadian-made products, offsetting declines in agency and personal winemaking businesses.

• The company completed the sale of a non-core seven-acre land parcel in BC for $1.3 million, supporting its strategy to focus on high-return assets.

Financial highlights

• Q1 sales were $99.2 million, nearly flat compared to $99.5 million in Q1 2025, with growth in grocery and big box channels offset by standalone retail declines.

• Gross margin rose to $42 million (42.4%), up from 38.4% last year, aided by a $20 million cost-savings program and the Ontario Grape Support Program.

• Excluding the Ontario Grape Support Program, gross margin was 40.2%, still showing strong year-over-year growth.

• EBITDA increased to $16.1 million, up from $12.9 million in Q1 last year.

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

Outlook and guidance

• Optimism for the remainder of fiscal 2026, with a strong balance sheet and continued focus on cost savings and operational efficiency.

• The company expects to benefit from sustained consumer preference for domestic wines and supportive government policies.

• Harvest outlook is positive, with strong expectations in Ontario and improving conditions in the west.

• Focus remains on margin expansion, profitability, and free cash flow.

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