DavidsTea announces its first profit in seven years

MONTREAL –

DavidsTea Inc. posted its first annual profit in seven years as it capped a year of recovery by posting a profit in the fourth quarter.

The Montreal-based beverage company, which has significantly restructured its operations, earned $78.1 million in fiscal 2021. That compares to a loss of $55.9 million a year earlier.

The annual profit was the first since 2015, when it brought in $6.5 million.

For the three months ended Jan. 29, DavidsTea earned $1.3 million or five cents per diluted share, compared to a quarterly loss of $27.2 million or $1 per share in the same period a year earlier. .

DavidsTea’s adjusted earnings fell to $1.91 million or seven cents per share from $4 million or 15 cents per share in the fourth quarter of 2020.

Quarterly revenue fell less than 1% to $39.9 million from $40.2 million a year earlier, while full-year revenue fell 14.5% to settle at $104.1 million, compared to $121.7 million in 2020.

“Fiscal 2021 was marked by a series of challenges and accomplishments as we maintained our focus on our newly defined long-term growth strategy,” CEO and Chief Brand Officer Sarah Segal said in a statement. Press.

A corporate restructuring saw the company close its US retail network and all but 18 of its locations in Canada.

It has increased digital sales and grocery store sales in Canada. It plans to enter the wholesale circuit in the United States by the end of the year.

This report from The Canadian Press was first published on April 29, 2022.

Leave a Comment

Your email address will not be published.

Scroll to Top