Q: Your thoughts on the company's earning please. I thought that with less American wines being purchased, sales of Canadian wines would proportionally increase.
5i Research Answer:
Loss of 1.7c beat estimates of -9.5c; revenue of $75.5M missed estimates of $77.9M. EBITDA of $13.5M beat estimates by a wide margin. Revenue fell $10M but margins increased. There was a big revenue boost from a one-time VQA sale last year and the Easter holiday was later. This explains most of the decline. The Tariff war impact should be more positive next quarter.
SG & A costs moved nicely lower, which helped margins. The stock is up nicely this year yet remains very cheap at 10X earnings. Not overly exciting, but stable in a volatile market.