Skip to content
live
live

DavidsTea swings to $2.6-million profit in second quarter despite store closures

MONTREAL — DavidsTea Inc. swung to a $2.6-million profit in its latest quarter despite a 41 per cent decrease in sales during the COVID-19 store closings.
20200921170952-5f69210498b1ab680732e381jpeg

MONTREAL — DavidsTea Inc. swung to a $2.6-million profit in its latest quarter despite a 41 per cent decrease in sales during the COVID-19 store closings.

The insolvent Montreal-based beverage company says it earned 10 cents per diluted share for the period ended Aug. 1, compared with a loss of 44 cents per share or $11.3 million a year earlier.

Excluding one-time items, including $3.2 million in restructuring costs and a Canadian government COVID-19 subsidy, DavidsTea says its adjusted loss was reduced to $1.72 million or six cents per share, from a loss of $6.3 million or 24 cents per share in the second quarter of 2019.

Sales plunged to $23 million from $39.2 million in the prior year's quarter but were up 35 per cent from the first quarter.

Sales came from a 190 per cent increase in e-commerce and wholesale revenues.

After the quarter-end, 18 stores reopened in Canada. The company also received court protection from its creditors while it restructures to a digital-led operation.

“Second-quarter results reflect the solid performance of our online retailing and wholesale distribution activities as we accelerate our transformation towards a digital first strategy," said chief operating and financial officer Frank Zitella.

This report by The Canadian Press was first published Sept. 21, 2020.

The Canadian Press

Rogers Media
2001 Thurston Drive Ottawa, ON, K1G 6C9 © 2006-2021 Rogers Media. All rights reserved.