MONTREAL – DavidsTea brewed a strong start to the year as profits and sales grew because of continued expansion.
The Montreal-based company earned $1.5 million during the three months ended April 30. That compared to a loss of $93.2 million a year ago when including the impact of the conversion of preferred shares to common shares in conjunction with its initial public offering.
Excluding one-time items, DavidsTea (Nasdaq:DTEA) said it beat its forecasts by posting $1.5 million in adjusted net income or six cents per share, up from $1.1 million or four cents per share in the first quarter of 2015.
Sales increased 24.3 per cent to $44.5 million from $35.8 million due to the addition of five stores and a 4.9 per cent increase in sales at stores open for at least a year.
DavidsTea operates 198 stores in North America, 80 per cent of which are in Canada.