Andrew Peller Limited

Good morning, ladies and gentlemen, and welcome to the Andrew Peller Limited Second Quarter 2026 Financial Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we'll conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, November the 5th, 2025. I would now like to turn the conference over to Craig Armitage. Please go ahead, Craig.

Thank you, and good morning, everyone, and thanks for joining us. Before we begin, just as a quick reminder that during the call, management may make statements containing forward-looking information. This forward-looking information is based on a number of assumptions and is subject to a number of known and unknown risks. and uncertainties that could cause actual results to differ materially from those disclosed or implied, I'd encourage you to refer to the company's Q2 earnings release, the MD&A, and other security filings for additional information about these assumptions, risks, and uncertainties. With that, I'll turn it over to Paul Dubkowski, Chief Executive Officer. Paul?

Thanks, Craig, and good morning, everyone. I'd like to thank everybody for joining us today. I'm pleased to be joined by Renee Kauke, our Chief Financial Officer, and Patrick O'Brien, our President and Chief Commercial Officer. As usual, I'll begin with a review of our operational and strategic highlights from the second quarter, and then Renee will walk us through the financial results. As we push to the end of our 2025 harvest, I am pleased to report that the harvest in Niagara is coming in as expected, with strong yields and good quality. We're also very pleased to see the return of harvest in the Okanagan Valley this year after a challenging year last year due to the extreme cold weather events. While we will still not be back to 100% for a few years, it is very encouraging to see the activity in the valley this year. A huge thank you to our supply, operations, winemaking teams, our farmers, and to all partners who are helping deliver a successful harvest. As we step back and look at the industry from a macro perspective, The industry and consumers continue to navigate the evolving Ontario retail landscape. There is ongoing growth in the better-for-you and sparkling categories, and we see more and more consumers developing an affinity for domestic products and turning to made-in-Canada offerings. Given our leading market position, portfolio breadth, and focus on consumer-centric innovation, we are well-positioned to capitalize on a sustained shift in the industry and consumer behavior. Perhaps more importantly for our medium and long-term growth, we continue to be encouraged by the government's commitment to a strong and competitive wine industry with best-in-class policy that is driving investment domestically and will have a significant economic impact across the regions, provinces, and all of Canada. At Andrew Peller, we are investing in infrastructure, equipment, processes, and people so we can purchase more locally grown grapes expand our production capacity, and introduce new products that showcase the richness of Canadian wine at a time when there is growing awareness and affinity for Canadian-produced wines. Turning to our Q2 financial results, it was another very strong quarter overall with increased margins and profitability highlighted by 18% growth in EBITDA and a 96% increase in net earnings. At the same time, we continue to improve working capital and reduce debt, further strengthening our balance sheet and creating capacity for our growth initiatives. From a top-line perspective, our sales decreased year-over-year, which was an expected result given the impact of the LCBO strike in last year's Q2. As we discussed at the time, this drove a significant increase in sales from our retail stores as our team quickly mobilized to meet consumer demands with the LCBO being closed for close to three weeks last Q2. Excluding the impact of the strike, our Q2 sales grew year over year, reflecting multiple revenue drivers. As we aim to be the fastest growing wine company in English Canada, one of our strategic pillars is focused growth in our core wine business. For the fiscal year to date, I'm pleased to report that we have gained share over the prior year in English Canada and across all major markets for Andrew Peller. Our estates in the east and the west also performed well in the quarter. Q2 is typically a strong quarter with higher traffic in the summer months, and we're also benefiting from the trend of Canadians favoring local destinations. We have world-class properties, and our teams are delivering exceptional experiences, helping visitors discover great Canadian wine while deepening their connection to our brands. Among the recent highlights, Trius Restaurant in Niagara earned a second Michelin recommendation, one of the very few establishments to receive this honor. Another strategic focus for the company is winning in critically evolving markets, and we have seen this through our continued strong performance in grocery and big box stores as the Ontario retail market continues to evolve. We have placed a significant emphasis on these two channels with the expectation they will make up a growing percentage of total category sales as consumption shifts over time. Our broad portfolio, offers a combination of quality, innovation, familiarity, and approachability, making us well-positioned to win as consumers shop in these expanded retail settings. As you've heard from us in recent quarters, our team is also highly focused on winning in growth categories, including Better For You and Sparkling. Honest Lot, a zero-sugar offering, continues to be among our fastest-growing brands, and our Sparkling portfolio is also performing extremely well. We've invested in additional Sharma tanks to increase our sparkling capacity and capitalize on this growing demand. Looking ahead, we have an exciting roadmap of innovation covering both new product and new packaging, so please stay tuned. Turning to our other financial measures, we reported significant growth in our margins and profitability, strong cash flow, and reduced leverage. In short, the business is on a very solid footing and poised to use its balance sheet to support future growth and drive shareholder value. Prior to passing it over to Renee to talk about our financials in more detail, I would also like to highlight our recent announcement from yesterday that Susan O'Brien is joining the Andrew Keller Board as an independent director. Susan is currently the Executive Vice President, Chief Transformation Officer at Canadian Tire, with her previous role being Executive Vice President, Chief Brand and Customer Officer. Susan brings extensive experience in the consumer goods and retail sectors with significant expertise in customer experience, brand strategy, digital transformation, and data-driven growth. We're excited for Susan to join the Interpeller team. With that, I'm going to pass it over to Renee.