Andrew Peller (ADW) investor relations material

Executive summary

• Q3 2026 revenue rose 3.3% year-over-year to $108.8 million, with strong performance in Western Canada and wine club sales offsetting softness in owned retail stores and wine kit business.

• Gross margin reached or neared all-time highs, reflecting operational efficiencies, cost savings, and support from the Ontario Grape Support Program.

• EBITA for Q3 2026 increased to $19.7 million (up 6.1%–16.1% year-over-year), supporting sustained profitability.

• Net earnings for Q3 2026 increased to $7.9 million from $7.7 million in Q3 2025; YTD net earnings grew to $21.4 million from $11.9 million.

• Focused on innovation and new product launches in high-growth wine and craft beverage segments, including the national launch of Laylow.

Financial highlights

• Q3 2026 revenue: $108.8 million (up 3.3% year-over-year); YTD revenue: $313.5 million (nearly flat year-over-year).

• Gross margin improved to 41.8% in Q3 and 43.3% YTD, aided by cost savings and government support.

• EBITA for Q3 2026 was $19.7 million (up 6.1%–16.1% year-over-year); YTD EBITA reached $57.1 million (up 15.6%).

• Interest expense declined by 25.8%–26% year-over-year; net debt reduced to CAD 164 million.

• Inventory at quarter end was CAD 156 million, down from CAD 170 million at fiscal 2025 year-end.

Outlook and guidance

• On track for strong Fiscal 2026 and ongoing growth into Fiscal 2027, with continued margin expansion expected but at a slower rate.

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

• More innovation planned, including a brand refresh for Peller Estates and further product launches.

• Positioned for long-term growth through asset monetization and economic development in wine regions.

• Confident in ability to adapt to evolving market and consumer trends.