Wednesday, October 8, 2025

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Canaccord Expects Inflation To Negatively Impact Waterloo Brewing In Third Quarter

Waterloo Brewing Ltd. (TSX: WBR) is set to report its third quarter financial results on December 9th, before the market opens. It is expected that they report quarterly revenues of C$25.70, while gross profits are expected to be 22% and earnings per share of C$0.03.

Waterloo Brewing currently has 4 analysts covering the stock with an average 12-month price target of C$9.66, or a 64% upside to the current stock price. Out of the 4 analysts, 2 have strong buy ratings while the other 2 have buy ratings. The street high sits at C$12 while the lowest comes in at C$8.50.

In Canaccord’s third quarter preview, they reiterated their C$9 12-month price target and buy rating saying that they are expecting supply chain issues to weigh on the companies quarterly results. They are expecting the same issues that Waterloo brewing experienced last quarter to weigh on their results this quarter. These issues include pantry loading, transient issues, the Caledon warehouse, and inflationary pressures from supply chain issues.

As a result of this, Canaccord is forecasting quarterly revenues of C$27 million and adjusted EBITDA of C$4.2 million. While gross margins are expected to grow 70 bps from last quarter to 22.6%, but below last year’s margin of 36.2%.

Canaccord expects a decline of 6.2% in owner-brand volume for the quarter but most of the decline will be offset by 60% year-over-year growth in the company’s co-packing segment. As for gross margins, they expect “inflationary cost pressures” to stifle some growth in the co-packing segment.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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