Topic: How To Invest

The Successful Investor Hotline – Friday, June 13, 2025

Article Excerpt

ANDREW PELLER LTD. (class A shares) remains a buy for long-term gains. The company, Toronto symbols ADW.A (non-voting) $5.02 and ADW.B $5.00, is Canada’s second-largest wine producer, after Arterra Wines. In its fiscal 2025 fourth quarter, ended March 31, 2025, Peller’s sales fell 11.2%, to $75.5 million from $85.0 million a year earlier. That decrease is largely because the year-earlier quarter included $5.8 million in support payments from the Ontario government; in fiscal 2025, the company recorded those payments throughout the year instead of reporting all in the final quarter like it did the previous year. Thanks to a cost-cutting plan, losses in the quarter improved to $0.02 a share (or a total of $747,000) from $0.17 a share (or $6.9 million). For all of fiscal 2025, the plan cut Peller’s costs by $10.7 million. So far, tariffs have had little impact on Peller’s earnings and cash flow. In fiscal 2026, the company will probably earn $0.23 a share, and the class A shares trade…