MONTREAL — DavidsTea started its fiscal year by swinging to a small profit despite seeing sales plunge 28 per cent.
The beverage company says it earned $3.2 million or 12 cents per diluted share for the three months ended May 1.
That compares with a loss of $45.8 million or $1.76 per share a year earlier.
Excluding restructuring charges, federal COVID-19 subsidies and impairment charges, adjusted profits were $1.4 million or five cents per share, versus a loss of $6.7 million or 26 cents per share in the first quarter of 2020.
Sales were $23.2 million, down from $32.2 million. However, online and wholesale revenues grew 17.2 per cent to $19.9 million in the quarter while retail sales plunged 78 per cent to $3.3 million.
The insolvent retailer plans to distribute $18 million to creditors as it prepares to emerge from creditor protection a "radically different organization" with a digital-first strategy, said Sarah Segal, CEO and chief brand officer.
DavidsTea has been severely impacted by stock lockdowns and exited its entire retail network except 18 Canadian stores.
This report by The Canadian Press was first published June 15, 2021.
The Canadian Press