Andrew Peller Limited

Good morning. My name is Joelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Andrew Peller LTD Q3 2025 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press I will now turn the call over to Jennifer Smith, Investor Relations. Please go ahead, Ms. Smith.

Thank you and good morning. Before we begin, this is a reminder that during the conference call, management may make statements containing forward-looking information. This forward-looking information is based on a number of assumptions and is a subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those disclosed or implied. Please refer to the company's earning release, MD&A, and other securities filings for additional information about these assumptions, risks, and uncertainties. With that, I'll now turn things over to Paul Dukowski, Chief Executive Officer of Andrew Peller Limited. Paul?

Thank you, Janet. Good morning to everybody on the call. It's a pleasure to be joining you here today. I'm pleased to be joined today by Renee Kauke, Interim Chief Financial Officer, and Patrick O'Brien, President and Chief Commercial Officer. In terms of an agenda for the call today, I will review operational highlights and provide an update on key business matters for the quarter. And Renee will review our financial highlights before we open up the call for any questions. I'm pleased to share that our Q3 results showed strong year-over-year growth in revenue, margins, and EBITDA as our team navigated significant changes to the retail distribution landscape in Ontario. The largest driver of change this quarter was retail modernization in Ontario, our largest market. As of the end of October, eligible convenience, gas, grocery, and big box stores in Ontario are now able to sell beer, cider, wine, and RTDs should they choose to do so. This change has expanded distribution points across the province by over 4,000 locations. To address this changing landscape, we have made several changes internally to enhance our reach and sales capabilities within the convenience and gas channels. We partnered with a leading provider of outsourced sales and marketing solutions within that channel. We have also optimized our commercial structure to ensure we are set up to meet the changing needs of our grocery and big box customer partners as we move forward. Our sales growth in the quarter was led by our success in big box retail. Initial demand in big box has exceeded expectations, and we continue to evolve our product lineup based on consumer preferences and our supply chain. These gains were tempered by anticipated declines in the LCBO and our company-owned retail stores. We expect this to continue in our fourth quarter, traditionally our lowest volume quarter, as we will continue to evaluate the impact of this channel shift as retail modernization stabilizes in market in Ontario. We are pleased to highlight that during the third quarter, we continue to gain market share in total wine and VQA wine while maintaining our position in blended wines. Our portfolio highlights include our position as a strong number two share in the VQA category, with our Gretzky brand holding the number one position in the category, with Greymonk, Peller, and Trius continuing to show strength. In the blended wine category, we've seen strong growth in Copper Moon and Honest Lot, a zero sugar offering across several varietals. Honest Lot continues to be our fastest growing brand across the portfolio, competing in the healthier for you segment. Within the overall wine category, the fastest-growing brands are in the healthier for you segment, and we are furthering our innovation in this area as we expect to see this momentum continue with changing consumer preferences. By meeting consumer needs through innovative product offerings and enhanced distribution, we have continued to grow market share in fiscal 2025 across all major markets and remain the fastest-growing wine supplier in English Canada. Moving to the balance sheet, we are pleased to see continued working capital improvement as we right-size our inventory levels post the supply chain disruption over the last few years. These improvements, along with increased profitability, are driving improved free cash flow and ongoing debt reduction. Lastly, before passing it to Rene to review our financial results in more detail, I wanted to address the ongoing risk of a trade conflict between the U.S. and Canadian governments. which was set to impose a 25% tariff on goods being imported into each country. While we're pleased to see that any tariffs are delayed 30 days, we have performed a preliminary assessment of the exposure and opportunities for our business. Our initial analysis has indicated that with ongoing management and support, the impact of tariffs on U.S. source bulk wine and components can be managed effectively, but we will continue to monitor the potential impact of further depreciation of the Canadian dollar against the US dollar. While these potential changes bring uncertainty, they also present an opportunity for our organization, Canadian wine producers, and for all Canadian-made products. We believe this is a time to support the incredible products that are made, manufactured, and grown here in Canada, with wine being one of them. Supporting domestic wine producers and grape growers will drive increased share for Canadian wines and has the potential to drive significant investment and economic impact across the entire value chain. With that, I'll pass it over to Renee.