Andrew Peller has posted a lift in profits in its first fiscal quarter, thanks to an increase in sales in the period.

The Canadian wine company, which reported a net loss for its full-year in June, said late last week that net profits in the three months to the end of June came in at C$3.3m (US$3m)compared to C$2.7m a year earlier. Sales in the three-month period were 14% up at C$70.2m thanks to "solid organic growth and contribution from recent acquisitions", the company said.

Sales also benefited by stronger sales at LCBO locations in Ontario due to the threatened labour strike.

Included in the net profits result was a net non-cash gain of approximately C$1.1m related to mark-to-market adjustments on an interest rate swap and foreign exchange contracts.

"We are pleased to see continued solid organic growth in our sales despite the slow Canadian economy," said company president and CEO, John Peller. "More importantly, our input costs are now stabilising and we expect gross profit margins to continue to improve.

"Combined with our ongoing cost control and production efficiency programmes, we expect to see further improvement in profitability through the balance of fiscal 2010."