Andrew Peller (ADW) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 results with significant growth in margins, EBITDA/EBITA, and net earnings, despite a year-over-year sales decline due to the prior year's LCBO strike impact.

• Canada's largest publicly traded wine producer with over 1,600 brands, 11,000 distribution points, and a high-value asset base exceeding $500M.

• Gained market share in English Canada and all major markets, with strong performance in both eastern and western estates.

• Continued focus on innovation, infrastructure investment, and expanding production capacity to support long-term growth.

• Added Susan O'Brien to the board, bringing expertise in consumer goods, retail, and digital transformation.

Financial highlights

• Q2 FY26 revenue was $105.5 million, down 3.4% year-over-year, but core channels showed strength; FY25 sales reached $389.6M, up 1.0% year-over-year.

• Q2 gross margin was 45.7% ($48.3 million), up from 42.4% last year, with Ontario Grape Support Program contributing $2.4 million.

• EBITDA/EBITA increased 18% to $21.3 million in Q2, and 25% to $62.9M for FY25.

• Net earnings more than doubled to $8.9 million in Q2 and $13.5 million YTD.

• Interest expense decreased 28% in Q2 due to lower debt and interest rates.

Outlook and guidance

• Expect continued strong performance and margin improvement for the remainder of the year, with top-line growth when adjusted for last year's strike.

• Focus on sustained EBITA growth, above-category revenue growth, and expanded gross margins.

• Ongoing investments in growth categories such as Sparkling and Better For You, with no anticipated increase in capital expenditure.

• Monetization of non-core assets to improve free cash flow.

• Confident in long-term growth, supported by government policy and evolving consumer preferences.