Overview

• Canada wine producer's Q4 revenue rose 5.2% yr/yr to C$79.5 mln

• Q4 net earnings turned positive after loss in prior year

• Company to be acquired by Fairfax Financial Holdings, pending approvals

Outlook

• Company did not provide specific financial guidance for future quarters or the next fiscal year

Result Drivers

• LIQUOR BOARD AND BIG BOX SALES - Q4 revenue growth was primarily driven by strong sales to liquor boards and big box stores in Eastern Canada

• EASTER HOLIDAY TIMING - Timing of the Easter holiday relative to fiscal 2025 contributed positively to Q4 results

• PERSONAL WINEMAKING SOFTNESS - Growth was partially offset by softness in the Company’s personal winemaking business

Company press release: ID:nGNX64B5WW

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue		C$79.5 mln	C$79 mln (1 Analyst)
Q4 Net Income		C$5.7 mln
Q4 Gross Margin		52.2%
Q4 EBITA		C$15.1 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the distillers & wineries peer group is "buy."

• Wall Street's median 12-month price target for Andrew Peller Ltd is C$8.00, about 0.6% above its June 15 closing price of C$7.95

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

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