- Half-year net profits rise by 24% to CAD7.3m (US$7.1m)
- Net sales up by 4.4% to CAD139.4m
- Operating profits (EBITA) up by 5% to CAD18.3m
- Group reports higher demand for both premium and table wines
Andrew Peller has reported stronger wine sales and profits in the first half of its fiscal year, thanks to demand for both table and premium wines.
//i4.aroq.com/1/andrew-peller.jpgThe Canadian firm's net sales for the six months to the end of September increased by 4.4% to CAD139.4m (US$136.4m). Despite the detrimental effects of a sales levy introduced in the key state of Ontario in July last year, the group said it improved sales thanks to better distribution of its premium and table wines to provincial liquor boards in Canada, as well as higher exports.
Peller's operating profits, or EBITA, increased by 5% on the first half of 2010, to CAD18.3m, despite a CAD1m cost related to the Ontario levy. Net profits rose by 24%, to CAD7.3m, inflated by lower financial charges, said that group, which last month formed a strategic alliance with Wayne Gretzky Estate Winery.
In the second quarter, Peller saw net sales increase more slowly, by 1.4% to CAD70m. EBITA crept up by 0.3% to CAD8.8m, but net profits increased strongly, by 81% to CAD3.38m.
On 1 July 2010, Ontario authorities introduced a levy on so-called Cellared-In-Canada wines (CIC) sold in private retail stores in the province, as part of a strategy to harmonise sales tax.
Sectors: Company results, Wine
Companies: Andrew Peller
