Second Cup coffee chain posts lower Q1 net profit but revenues up

MISSISSAUGA, Ont. – The Second Cup Ltd. (TSX:SCU) said Friday it earned a first-quarter profit of $56,000 compared with a profit of $688,000 in the same quarter last year.

The profit amounted to a penny per share for the quarter ended March 29, down from seven cents per share a year ago.

Excluding restructuring charges, Second Cup reported an adjusted profit of five cents per share for the quarter compared with seven cents per share in the same quarter last year.

Second Cup said its customer traffic was hurt by the harsh winter weather.

The coffee shop chain said cafe sales fell 6.4 per cent to $43.9 million from $47 million a year ago, while same cafe sales fell 6.9 per cent.

Meanwhile, revenue for the company, which included royalty revenue, was up at $7.6 million, compared with $6.2 million in the first three months of 2013, boosted by a partnership with Kraft Canada Inc. to produce and sell Second Cup branded coffee beans and ground coffee in stores.

“The coming year will be focused on establishing the foundation for Second Cup to be a best in class, speciality coffee company,” Alix Box, president and CEO said in a news release on Friday.

“A comprehensive strategic review is underway in all aspects of the company,” she said.

Note to readers: This is a corrected version. An earlier version incorrectly stated Second Cup’s profit for the first quarter and the year-ago period. Last paragraph also mistakenly said “he’ instead of ‘she’