Toronto, Ontario--(Newsfile Corp. - October 22, 2026) - THS Maple Holdings Ltd. (TSXV: YAY) (the "Company" or "THS"), a leading producer and global distributor of maple syrup and maple-flavoured products, today announced its audited financial and operational results for the twelve-month period ended June 30, 2026. Revenue grew 14.6% to $16.5 million, led by an 87.8% increase in sales to the United States, as the Company continued to expand its distribution footprint, secure supply in its key product categories and build the syrup inventory needed to support further growth.

Key Financial Highlights

• Revenue Growth: Sales for the fiscal year ended June 30, 2026 reached $16.5 million, a 14.6% increase over $14.4 million in fiscal 2025, even though supply shortfalls in maple cream cookies, the Company's largest product category, cost an estimated $1.0 million in sales during the first nine months of the year. Fourth quarter sales rose 15.6% to $4.8 million.

• Gross Margin Reflects a Deliberate Bulk Sales Strategy: Gross margin was 18.0% in FY 2026, compared to 21.8% in FY 2025. Most of the decline (approximately two percentage points) reflects deliberate bulk syrup sales: ordering more of the many grades of syrup lets the Company use what it needs and sell any overage at its discretion at a lower margin. Syrup grading commissions and purchase levies, which are expensed as incurred and are expected to decrease in FY 2027, reduced gross margin by approximately one percentage point. The balance reflects a higher share of lower-margin products, weaker travel-related demand and higher packaging and transportation costs.

• Leaner Selling Costs: Selling expenses fell 9.1% to $1.3 million despite the 14.6% increase in sales, decreasing to 7.8% of sales from 9.9%, supported by lower freight costs from the new Delta, BC distribution site and a higher proportion of sales to major customers.

• Net Loss and EBITDA: The Company reported a net loss of $2.5 million ($0.041 per share), compared to $1.5 million ($0.026 per share) in FY 2025. EBITDA was negative $767,000 compared to negative $307,000, reflecting the lower gross margin, higher administrative expenses tied to increased headcount and the expanded facility footprint, and finance costs of $1.0 million (2025 – $0.7 million).

• Inventory Growth: Inventories increased to $9.8 million from $6.1 million following the Company's maple syrup purchases from the PPAQ, while working capital rose to $1.3 million from $1.2 million. Customer deposits of $1.9 million, received mainly from a large U.S. wholesale customer for bulk syrup orders, will be applied against deliveries in fiscal 2027.

• Financial Support: On February 26, 2026, the Company's bank renewed its credit facilities for one year, including the $5.0 million revolving line of credit. Companies controlled by two directors advanced an additional $2.6 million during the year, and the $0.8 million EDC-guaranteed standby letter of credit securing the Company's syrup purchases was extended to June 1, 2027.

Operational Highlights

• U.S. Expansion: Sales to the United States rose 87.8% to $3.5 million, from $1.9 million in FY 2025, supported by the Company's Vermont storage and distribution site. Sales outside Canada represented 29.5% of total revenue, up from 22.1%.

• Western Canada Footprint: The Company opened a warehouse and distribution site in Delta, BC in November 2025 to better serve BC-area customers and reduce freight costs, and opened its second retail kiosk in Grande Prairie, AB in October 2025. Subsequent to year end, the kiosk was relocated to Vancouver, BC, effective September 1, 2026.

• Production Efficiency and Capacity Expansion: A new cartoning machine was commissioned during the third quarter to increase packaging efficiency and capacity, and approximately 5,000 square feet of additional space was added at the Granby facility effective May 1, 2026.

• Secured Supply in Its Largest Category: The Company's subsidiary, Turkey Hill Sugarbush Ltd., became the exclusive supplier of maple cream cookies manufactured by Commercial Bakeries Corporation to the Canadian travel and tourism channel. The agreement is expected to secure supply in the category most affected by shortfalls this year, with its economic benefits expected mainly in fiscal 2027.

• Expanded Syrup Purchasing: Ahead of the 2026 crop year, the Company chose to secure bulk maple syrup for future growth, declaring an anticipated purchase volume of 2,675,000 pounds to the PPAQ. That is more than three times the 815,000 pounds declared for 2025. The larger position gives the Company a broader mix of grades to serve both its branded products and bulk customers, leaving it well supplied as industry inventories tighten.

CEO Commentary

"Fiscal 2026 was a year of growth and investment," said Tom Zaffis, CEO of THS Maple Holdings Ltd. "We grew sales by almost 15%, nearly doubled our U.S. business and expanded our capacity in British Columbia and Granby. In fiscal 2027, our priority is turning that growth into profitability by focusing on higher-margin products, including our non-syrup maple products, in the U.S. and international markets."

Strategic Outlook

THS continues to focus on improving margins, enhancing supply chain efficiencies and expanding market share in key regions, particularly the United States and Western Canada. With increasing global demand for natural sweeteners and maple products, the Company remains confident in its ability to deliver long-term value for shareholders.

Non-IFRS Financial Measures

Management uses net loss and comprehensive loss as presented in the audited consolidated statements of comprehensive loss as well as "EBITDA" as a measure to assess performance of the Company (see full note in MD&A).

• EBITDA for the fiscal year decreased by $0.46 million, to negative $767,000 compared to negative $307,000 in the prior year. The decrease reflects the lower gross margin, driven mainly by deliberate lower-margin bulk syrup sales, and higher administrative expenses, partly offset by lower selling expenses. EBITDA for the fourth quarter was negative $307,000, compared to negative $193,000 for the same period last year.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Source: Turkey Hill Sugarbush Ltd.