• Full-year net profits slide by 49% to CAD10.99m (US$11.2m)
  • Operating profits up by 17% to CAD31.96m
  • Net sales rise by 1% to CAD265.4m
  • Profits down as winemaker cycles sale of its beer business in previous year
Andrew Peller FY sales inch up, but profits suffer

Andrew Peller FY sales inch up, but profits suffer

Andrew Peller has said that it is pleased with underlying momentum in the business, despite reporting a slide in profits for its full-year.

The Canada-based winemaker reported a 49% slide in profits for the 12 months to the end of March, to CAD10.99m (US$11.2m). However, the group blamed the fall on a tough comparative figure in the previous year, when profits were boosted by a CAD11.9m gain on the sale of its beer business.

Excluding this, net profits from continuing operations increased by 15%, said Andrew Peller yesterday (8 June). Earnings before interest, tax, amortisation and one-off items increased by 17% to CAD31.96m.

At the top line, the group's net sales inched up by almost 1% to CAD265.4m.

“Our successful sales and marketing initiatives, combined with the increasing global recognition of the quality of our premium and ultra-premium wines, generated increased sales through the majority of our trade channels in fiscal 2011 and a solid improvement in profitability,” said the company's president and CEO, John Peller.

“Looking ahead, we are confident we will continue this trend of positive growth,” he said. The group said that it will continue to focus on cost controls to improve profitability.

Since August last year, the firm's margins have been under greater pressure after authorities in its home state of Ontario began charging a levy on so-called Cellared-In-Canada wines that are sold in private retail stores.

To view the company's announcement, click here.