Gretzky partnership fuels Andrew Peller

Article Excerpt

ANDREW PELLER LTD. (Toronto symbols ADW.A $10 and ADW.B $10; Income Portfolio, Consumer sector; Shares outstanding: 42.6 million; Market cap: $426.0 million; Price-to-sales ratio: 2.5; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.andrewpeller.com) began operating in 1961 and is now Canada’s second-largest wine producer, after Constellation Brands. It accounts for 14.4% of the country’s wine sales, and 37.1% of wines produced in Canada. The company’s sales rose 20.7%, from $276.9 million in 2012 to $334.3 million in 2016 (fiscal years end March 31). Earnings rebounded after minor setback Earnings rose from $0.31 a share (or a total of $13.0 million) in 2012 to $0.35 a share (or $14.5 million) in 2013 (all per share amounts adjusted for a 3-for-1 stock split in September 2016). Earnings then fell to $0.34 a share (or $14.0 million) in 2014 due to a restructuring plan that aimed to improve the profitability of Peller’s home-winemaking business. Earnings rebounded to $0.36 a share (or $15.2 million) in 2015…