Andrew Peller Limited

Good morning, ladies and gentlemen, and welcome to the Andrew Peller Limited Q3 Fiscal 2026 Financial Results Conference Call. At this time, all lines are in listen-only mode. And following the presentation, we will have 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, February 11th, 2026. I'll now turn the call over to Mr. Craig Armitage. Please go ahead.

Thank you and good morning, everyone, and thanks for joining us. Before we begin, just 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 Q3 earnings release, the MD&A, and other filings for additional information about these assumptions, risks, and uncertainties. With that, I'll turn the call over to Paul Dubkowski.

Paul? Thanks, Craig, and good morning, everyone. I'd like to thank everybody for joining us today. I'm pleased to be joined today 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 third quarter, and then Renee will walk us through the financial results. To kick off, Q3 was another strong quarter for the company, highlighted by top-line growth of 3.3% and continued expansion in our margins and earnings, which are all at or near all-time highs for the company. These results reflect strong execution across all areas of the business and an ongoing focus on our strategic growth areas. From a sales perspective, our results reflect positive trends across multiple trade channels and regions, including a strong quarter in Western Canada and sustained momentum in Ontario as it continues to evolve with retail modernization. Our Western performance has been driven by market share improvements across almost all markets and channels. Our team has successfully navigated the impact of winter events from a few years ago, the introduction of replacement products, and the changing market dynamics to deliver a strong quarter and year to date thus far. Our strong performance and results reflect our team's agility and strong commercial execution. In the east, we continue to perform well as Ontario retail modernization progresses, showing sustained momentum in the new and evolving channels. This quarter, we had continued strong performance in big box, grocery, and the liquor board channel, supported by the depth and breadth of our portfolio. As expected, this was partially offset by some softness in our own retail stores and wine kit business as consumers adjust to the new distribution landscape. We were also pleased with the performance of our estate properties in Ontario and in BC. While Q3 is not our busiest quarter seasonally, consistent with Q1 and Q2, we saw an increase in traffic, conversion, and overall performance at our estates. This reflects continued consumer interest in local destinations and in the world-class experiences offered at our estates. During the quarter, we also delivered strong results in our wine club business as we were able to attract new members, improve retention, and increase average spend. This is a result of new and innovative club offers and our ability to take advantage of the increased traffic at our estates. In addition, we continue to focus on key growth segments that will support our long-term strategy. This includes the sparkling and better-for-you space, two growth segments within the broader wine category. In sparkling, we continue to make investments in our operational and brand marketing capabilities with a focus on being a market leader across the consumer sparkling landscape. Our Trius traditional method, Trius Cuvée Close, Peller Seco, and Peller Radiance 9% are just a few of our current offerings. In this growing space, we are excited for further products and innovation in the year ahead. Better-for-you space also remains a strategic area for our business. One of our fastest-growing brands on a slot continues to resonate strongly with consumers seeking a high-quality, zero-sugar option across multiple varietals, styles, and formats. And this quarter marked one of the most exciting milestones of our innovation roadmap, the national launch of LELO. After months of collaboration across the business, we are excited to bring LELO to market in two styles initially with Pinot Grigio and Rosé with more varietals and formats to come. These new products offer full flavor with fewer calories, less alcohol, and less sugar. The brand was created both for a new generation and changing consumer who is seeking balance without compromise. and it represents exactly the kind of thoughtful, consumer-led innovation that defines our strategy. LELO launched two weeks ago and will be available in all major markets and retailers over the coming months. Today, you can already find it in our wine shops, in the LCBO, and rolling out across the West. We are truly excited to bring this innovation to consumers all across Canada. As we look forward, we have more innovation to come this year, including a brand refresh for Peller Estates, which will strengthen one of the most important pillars of our portfolio and support continued consumer engagement. In addition to our top-line performance and progress on our strategic initiatives, we reported continued expansion in our margins and earnings, healthy cash flow, and reduced leverage. Our quarter and year-to-date results put us on track to deliver a strong fiscal 2026 and ongoing growth in fiscal 2027. With that, I'm going to pass it over to Renee, who will go a little bit deeper on the results.