Top-line growth in Q3
Q3 revenue increased 3.3% year-over-year, driven by strong performance in Western Canada (BC replacement program), momentum in Ontario channels (big box, grocery, liquor board), and Wine Club growth (new members, improved retention, higher average spend).
Improved gross margins
Q3 gross margin was $45.5M (41.8% of revenue) versus 40.2% in prior-year Q3; year-to-date gross margin improved to 43.3% from 40.4%, aided by cost savings (lower glass and inbound freight) and the Ontario Grape Support Program.
EBITDA and earnings expansion
Q3 EBITDA rose 6% to $19.7M (from $18.5M prior year). Year-to-date EBITDA was $57.1M, up nearly 16%, reflecting top-line growth and margin improvement.
Reduced leverage and lower interest expense
Net debt decreased to approximately $164M from $182M at fiscal year-end; interest expense fell ~26% year-over-year. Rolling 12-month debt-to-EBITDA was about 2.3x, supporting financial flexibility.
Inventory and working capital discipline
Inventory at quarter end was $156M, down from $170M year-over-year, reflecting disciplined inventory management despite seasonal harvest rebuilds.
Product innovation and portfolio expansion
Launched LayLow nationally (initial Pinot Grigio and Rosé) targeting Better-for-You segment; company investing in Sparkling and preparing a Peller Estates brand refresh. Better-for-You wine segment is growing ~60% year-over-year across English Canada.
Strong estate and direct-to-consumer performance
Increased traffic, conversion and performance at estate properties in Ontario and BC in Q3; Wine Club delivered strong results with new member acquisition, higher retention and increased average spend.
Cost savings program largely delivered
The company has largely delivered on its $25M cost improvement plan and continues to pursue additional initiatives to drive future margin gains.