Q1 2022 DAVIDsTEA Inc Earnings Call
We seek to share our passion and love for T through innovation across everything we do from ice tea Matcha tea powders to traditional garden to Cup origin teas, and specialty loose leaf tea blends.
Our expertise across many categories of loose leaf tea based product is what ensures we can fulfill our mission to be the destination President fleece T and to truly have a tea for all.
Thank you for your attention today I will now turn the call over to Frank.
Thank you Sarah and good afternoon, everyone.
Sales decreased 12, 1% to $20 4 million in the first quarter of fiscal 'twenty two.
As evolving consumer buying patterns post pandemic affected our results.
Brick and mortar sales improved more than 30 to more than 42% year over year, while e-commerce and wholesale revenue, which account for the majority of our sales decreased 21%. Following the transition from last year's pandemic fueled surge of online sales for serving customers.
Through our Omnichannel capabilities.
Despite a 12% decline in overall sales year over year, we believe we're on the right path with our digital first strategy supported by our expansion into wholesale.
We intend to continue investing in initiatives to stimulate demand as we create a path to sustained profitable growth for davids tea and value creation for all shareholders.
Gross profit decreased $1 8 million or 16, 7% year over year.
The first quarter of 2022 due to a decline in sales, partially offset by lower delivery and distribution costs.
As a percentage of sales gross profit amounted to.
43, 9% for the quarter compared to 46, 3% in the first quarter of 2021.
SG&A expenses increased $1 6 million or 17, 4% year over year in the first quarter of 2022.
Excluding software implementation and configuration costs as well as the wage subsidies received under the Canadian government COVID-19, economic response plan adjusted SG&A rose $7 million year over year.
The increase can be attributed to additional staffing online marketing expenses as we continue our transformation into becoming a digital first organization as a percentage of sales adjusted SG&A expenses in the first quarter of 2022 attained 49, 2% compared to 44% from the same period.
Last year.
Net loss in the first quarter of 2022 totaled $2 million compared to net income of $3 2 million in the first quarter of 2021.
Adjusted EBITDA. Meanwhile, reached <unk> dollars 1 million versus $2 5 million in the same period last year.
The decrease in adjusted EBITDA reflects reduced sales and lower gross profit year over year.
At quarter end, we had a cash position of $22 $7 million.
This solid financial position will support investments and innovation that Sarah talked about earlier, while accelerating our transition to becoming a digital first omnichannel key supplier.
The company's objective as previously outlined is to deliver sustained profitable growth and ultimately create shareholder value for all.
This concludes our Q1 2022 webcast and on behalf of the entire data <unk>.
For joining us today.
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