ANDREW PELLER LTD. $11 - Toronto symbol ADW.A

ANDREW PELLER LTD. $11 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $157.3 million; Price-to-sales ratio: 0.6; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.andrewpeller.com) reported that its sales rose 4.2% in the three months ended December 31, 2012, to $79.8 million from $76.6 million a year earlier. Peller has launched a number of new products, including its low-calorie skinnygrape wine.

Peller earned $6.6 million, up 5.1% from $6.3 million. Earnings per share rose 2.2%, to $0.47 from $0.46, on more shares outstanding. The company benefited from hedging contracts that it uses to lock in foreign exchange rates; that was the main reason for the higher earnings. Without these hedges, Peller’s earnings would have risen 0.5%.

Andrew Peller is a buy.

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