Andrew Peller Limited (ADW.A / ADW.B) (“APL” or the “Company”)
announced today results for the three months and year ended March
31, 2023.
FISCAL 2023 HIGHLIGHTS:
- Sales increased 2.2% year over year
due to growth across majority of trade channels and price
increases;
- Gross margin of 37.1% consistent
with the prior year;
- EBITA of $38.0 million compared to
$39.2 million in the prior year;
- One-time overhead restructuring
costs of $2.8 million incurred in fourth quarter; and
- Net loss of $3.4 million ($0.08 per
Class A Share).
“We were pleased with our sales growth in fiscal
2023 as we overcame significant supply constraints and performed
well across the majority of our well-established trade channels,”
commented John Peller, President and Chief Executive Officer. “Our
supply chain has normalized and while we are still feeling the
impact of inflation, our component costs have begun to decline and
we expect this trend to continue. Looking ahead, we anticipate a
return to more normal profitability levels over the next few years
as our strategies to grow higher margin product sales, introduce
new products and extend existing product lines, leverage the
strength of our national wine club membership, and focus on cost
reduction and profit improvement initiatives take effect.”
Sales for the year ended March 31, 2023
increased 2.2% over the prior year, and decreased 1.4% for the
fourth quarter primarily due to a $1.4 million reduction in sales
resulting from the repeal of a federal excise duty exemption. The
majority of the Company’s well-established trade channels performed
well with solid growth generated in markets closed for a portion of
fiscal 2022 due to the pandemic, including at the Company’s ten
estate wineries, sales to restaurants and hospitality locations,
and through its export business. The growth in these channels was
partially offset by a decrease in personal winemaking revenue due
to softer post-pandemic demand and distribution. Additionally, the
Company implemented price increases through fiscal 2023 to
partially offset inflationary pressures, further contributing to an
increase in sales compared to the prior year.
Gross margin as a percentage of sales was 37.1%
for the year ended March 31, 2023, consistent with the prior year.
The Company’s cost of goods sold in fiscal 2023 included a
reduction of $10.3 million related to a Wine Sector Support Program
(“WSSP”) grant provided by Agriculture Canada as it relates to
historical inventory sold during the year. The Company continues to
experience inflationary cost pressures, with the cost of imported
wine, glass bottles, packaging materials, and international freight
and shipping charges remaining above historical levels. In response
to these margin pressures, the Company has implemented price
increases and is targeting increasing sales of higher margin VQA
products. In addition, the Company is executing numerous production
efficiency and cost savings programs aimed at enhancing operating
margins including rationalizing stock keeping units (SKUs) and
evaluating alternate sourcing for imported wine and glass bottles.
Gross margin for the three months ended March 31, 2023 was 28.4%
compared to 29.2% in the fourth quarter of fiscal 2022.
As a percentage of sales, selling and
administrative expenses rose to 27.2% in fiscal 2023 from 26.7% in
prior year. Selling and administration expenses in fiscal 2023
include the increase in Ontario’s minimum wage when compared to
prior year and a return to full operations at the Company.
Earnings before interest, amortization, gain on
sale of assets held for sale, net unrealized gains and losses on
derivative financial instruments, other (income) expenses, and
income taxes (“EBITA”) were $38.0 million for the year ended March
31, 2023 compared to $39.2 million in the prior year. For the three
months ended March 31, 2023 EBITA was a loss of $1.3 million
compared to a loss of $0.6 million in the same quarter last
year.
Interest expense for the year ended March 31,
2023 has increased compared to prior year due to higher average
debt levels when compared to prior year and increases in interest
rates.
In the second quarter of fiscal 2022 the Company
completed the sale of its Port Coquitlam, British Columbia property
and related assets for total proceeds of approximately $8.8
million, net of transaction costs, generating a realized gain on
sale of $7.5 million or $0.21 per Class A share.
Other expenses increased in fiscal 2023 compared
to the prior year due primarily to one-time $2.8 million overhead
restructuring initiative completed in the fourth quarter of the
year.
The Company incurred a net loss of $3.4 million
($0.08 per Class A Share) for the year ended March 31, 2023
compared to net income of $12.5 million ($0.29 per Class A Share)
in the prior year. The net loss in the fourth quarter of fiscal
2023 was $10.0 million ($0.24 per Class A Share) compared to a net
loss of $7.0 million ($0.17 per Class A Share) in the prior
year.
Long-term debt increased to $208.1 million at
March 31, 2023 from $192.1 million at March 31, 2022. For the year
ended March 31, 2023, the Company generated cash from operating
activities, after changes in non-cash working capital items, of
$13.8 million compared to $15.6 million in the prior year. As at
March 31, 2023, the Company had unutilized debt capacity in the
amount of $141.9 million on its credit facility.
On June 13, 2023, the Company entered into a
$275 million Asset Backed Lending credit facility to reduce the
cost of borrowing. The new facility replaces the Company’s existing
credit facility entered into on December 8, 2020, and will be used
to fund working capital needs, acquisitions, and other general
corporate purposes.
Financial Highlights(Financial
Statements and the Company’s Management Discussion and Analysis for
the period can be obtained on the Company’s web site at
ir.andrewpeller.com)
For the three months and year ended March 31, |
Three Months |
Year |
(in $000) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Sales |
$ 77,712 |
|
|
78,838 |
|
$382,140 |
|
|
373,944 |
|
Gross margin |
|
22,059 |
|
|
23,029 |
|
|
141,892 |
|
|
138,992 |
|
Gross margin (% of sales) |
|
28.4% |
|
|
29.2% |
|
|
37.1% |
|
|
37.2% |
|
Selling and administrative
expenses |
|
23,306 |
|
|
23,659 |
|
|
103,880 |
|
|
99,804 |
|
EBITA |
|
(1,247) |
|
|
(630) |
|
|
38,012 |
|
|
39,188 |
|
Interest |
|
2,663 |
|
|
2,162 |
|
|
16,565 |
|
|
9,337 |
|
Net unrealized gain on
derivative financial instruments |
|
- |
|
|
(485) |
|
|
(380) |
|
|
(2,269) |
|
Gain on sale of land and
property |
|
- |
|
|
- |
|
|
- |
|
|
(7,518) |
|
Other expenses |
|
3,030 |
|
|
946 |
|
|
3,547 |
|
|
1,210 |
|
Net earnings (loss) |
|
(10,009) |
|
|
(7,019) |
|
|
(3,352) |
|
|
12,468 |
|
Earnings (loss) per share –
Class A |
$(0.24) |
|
$(0.17) |
|
$(0.08) |
|
$0.29 |
|
Earnings (loss) per share –
Class B |
$(0.21) |
|
$(0.14) |
|
$(0.07) |
|
$0.26 |
|
Dividend per share – Class A
(annual) |
|
|
$0.246 |
|
$0.246 |
|
Dividend per share – Class B
(annual) |
|
|
$0.214 |
|
$0.214 |
|
Cash provided by
operations |
|
|
|
13,754 |
|
|
15,592 |
|
(after changes in non-cash working capital items) |
|
|
|
|
|
|
|
|
Shareholders’ equity per share |
|
|
$5.87 |
|
$6.15 |
|
|
|
|
|
|
|
|
Investor Conference CallAn
investor conference call hosted by John Peller, President and CEO
and Paul Dubkowski, CFO will be held Thursday June 15, 2023 at
10:00 a.m. ET. To join the conference call please register within
one hour of the start time by accessing
https://emportal.ink/41phHg6 to receive an instant automated call
back. You will need to enter your name, company, and your
phone number to receive the call back. You can also dial one of the
following numbers to connect through an operator. If connecting
with an operator we advise calling ten to fifteen minutes prior to
the start time: Local/International: (416) 764-8659, North American
Toll Free: (888) 664-6392. The confirmation number for the call is
91277815. The call will be archived on the Company’s website at
ir.andrewpeller.com.
About Andrew Peller
LimitedAndrew Peller Limited is one of Canada’s leading
producers and marketers of quality wines and craft beverage alcohol
products. The Company’s award-winning premium and ultra-premium
Vintners’ Quality Alliance brands include Peller Estates, Trius,
Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills
Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery,
Raven Conspiracy, and Conviction. Complementing these premium
brands are a number of popularly priced varietal offerings,
wine-based liqueurs, craft ciders, and craft spirits. The Company
owns and operates 101 well-positioned independent retail locations
in Ontario under The Wine Shop, Wine Country Vintners, and Wine
Country Merchants store names. The Company also operates Andrew
Peller Import Agency and The Small Winemaker’s Collection Inc.,
importers and marketing agents of premium wines from around the
world. With a focus on serving the needs of all wine consumers, the
Company produces and markets premium personal winemaking products
through its wholly owned subsidiary, Global Vintners Inc., the
recognized leader in personal winemaking products. More information
about the Company can be found at www.ir.andrewpeller.com.
The Company utilizes EBITA (defined as earnings
before interest, amortization, gain on sale of assets held for
sale, net unrealized gains and losses on derivative financial
instruments, other (income) expenses, and income taxes) to measure
its financial performance. EBITA is not a recognized measure under
IFRS. Management believes that EBITA is a useful supplemental
measure to net earnings, as it provides readers with an indication
of earnings available for investment prior to debt service, capital
expenditures, and income taxes, as well as provides an indication
of recurring earnings compared to prior periods. Readers are
cautioned that EBITA should not be construed as an alternative to
net earnings determined in accordance with IFRS as indicators of
the Company’s performance or to cash flows from operating,
investing, and financing activities as a measure of liquidity and
cash flows. The Company also utilizes gross margin (defined as
sales less cost of goods sold, excluding amortization). The
Company’s method of calculating EBITA and gross margin may differ
from the methods used by other companies and, accordingly, may not
be comparable to measures used by other companies.
Andrew Peller Limited common shares trade on the
Toronto Stock Exchange (symbols ADW.A and ADW.B).
FORWARD-LOOKING INFORMATIONCertain
statements in this news release may contain “forward-looking
statements” within the meaning of applicable securities laws
including the “safe harbour provisions” of the Securities Act
(Ontario) with respect to APL and its subsidiaries. Such statements
include, but are not limited to, statements about the growth of the
business; its launch of new premium wines and craft beverage
alcohol products; sales trends in foreign markets; its supply of
domestically grown grapes; and current economic conditions. These
statements are subject to certain risks, assumptions, and
uncertainties that could cause actual results to differ materially
from those included in the forward-looking statements. The words
“believe”, “plan”, “intend”, “estimate”, “expect”, or “anticipate”,
and similar expressions, as well as future or conditional verbs
such as “will”, “should”, “would”, “could”, and similar verbs often
identify forward-looking statements. We have based these
forward-looking statements on our current views with respect to
future events and financial performance. With respect to
forward-looking statements contained in this news release, the
Company has made assumptions and applied certain factors regarding,
among other things: future grape, glass bottle, and wine and spirit
prices; its ability to obtain grapes, imported wine, glass, and
other raw materials; fluctuations in foreign currency exchange
rates; its ability to market products successfully to its
anticipated customers; the trade balance within the domestic
Canadian and international wine markets; market trends; reliance on
key personnel; protection of its intellectual property rights; the
economic environment; the regulatory requirements regarding
producing, marketing, advertising, and labelling of its products;
the regulation of liquor distribution and retailing in Ontario; the
application of federal and provincial environmental laws; and the
impact of increasing competition.
These forward-looking statements are also
subject to the risks and uncertainties discussed in this news
release, in the “Risks and Uncertainties” section and elsewhere in
the Company’s MD&A and other risks detailed from time to time
in the publicly filed disclosure documents of Andrew Peller Limited
which are available at www.sedar.com. Forward-looking statements
are not guarantees of future performance and involve risks,
uncertainties, and assumptions which could cause actual results to
differ materially from those conclusions, forecasts, or projections
anticipated in these forward-looking statements. Because of these
risks, uncertainties and assumptions, you should not place undue
reliance on these forward-looking statements. The Company’s
forward-looking statements are made only as of the date of this
news release, and except as required by applicable law, the Company
undertakes no obligation to update or revise these forward-looking
statements to reflect new information, future events or
circumstances or otherwise.
For more information, please
contact: Mr. Paul
Dubkowski, CFO and Executive Vice-President, IT(905) 643-4131
Source: Andrew Peller Limited
Andrew Peller (TSX:ADW.A)
Gráfico Histórico do Ativo
De Ago 2024 até Set 2024
Andrew Peller (TSX:ADW.A)
Gráfico Histórico do Ativo
De Set 2023 até Set 2024