MONTREAL – David’s Tea said its net loss grew in the second quarter despite a 32 per cent growth in sales.
The Montreal-based company (TSX:DTEA) lost $52.2 million in the 13 weeks ended Aug. 1, compared with a $2.7-million loss a year earlier.
It included a $50.2 million non-cash loss associated with the conversion of preferred stock in conjunction with its initial public offering.
Excluding this one-time item, David’s Tea recorded an adjusted loss of $1.6 million or seven cents per share, compared to a loss of $1.4 million or six cents per share a year earlier.
Sales increased to $32.8 million from $24.9 million as it added four stores and same-store sales grew 6.9 per cent.