Alcohol consumption showed a marked increase during the COVID-19 pandemic as Canadians were
forced to live a sheltered life for months on end. Beyond that, the wine market has shown promising
growth potential in recent years. Grand View Research recently estimated that the global wine market
was valued at $417 billion in 2020. The market researcher projects that it will deliver CAGR of 6.4% from
2021 through to 2028.
Andrew Peller (TSX:ADW.A) is a Grimsby-based company that is engaged in the production, bottling,
and marketing of wines and craft beverage alcohol products in Canada. Shares of this wine stock have
plunged 34% in 2022 as of close on October 19. The stock is down 38% from the prior year.
Investors can expect to see this company’s next batch of results on the afternoon of November 9. In the
first quarter of fiscal 2023, Andrew Peller delivered sales growth of 5.7% to $97.7 million. Meanwhile,
EBITDA remained largely flat at $11.9 million. However, net earnings fell to $2.86 million or $0.07 per
Class A share – down from $3.29 million or $0.08 per share in the first quarter of fiscal 2022.
President and CEO John Peller predicted that the company was on track for a more stable year in fiscal
2023. This wine stock currently possesses a favourable price-to-earnings ratio of 18. That is superior to
the industry average. Meanwhile, Andrew Peller offers a quarterly dividend of $0.061 per share. This
represents a solid 4% yield.
