Peet's Q1 revenue increases by 13 per cent

Coffee and tea company reports Q1 revenue of $81.2m.

Net income for the first quarter was $3.1m, which was equal to the net income for the corresponding quarter of prior year. For the quarter, diluted earnings per share were $0.22 compared to $0.23 per share in the corresponding period last year. Retail net revenue increased 4 per cent to $50.1m for the quarter from $48m.

The increase was primarily attributable to growth in existing stores. The company ended the quarter with 193 stores compared to 190 stores at the end of the first quarter in 2009. Speciality net revenue increased 29 per cent to $31.1m from $24.1m for the prior year quarter. Within specialty sales, the grocery business was up 39 per cent over last year, with the foodservice and office business up 27 per cent and home delivery sales were down by 1 per cent.

"Overall, we're off to a good start in the first quarter driven by strong grocery growth and improving retail sales trends," said Patrick O'Dea, president and CEO of Peet's Coffee & Tea. "Sales were a bit stronger than expected across all channels, particularly grocery where we grew 39 per cent, and our key growth initiatives are on track."

For the fiscal 2010, the company is targeting total net revenue growth of approximately 8-12 per cent resulting in 2010 net revenue of approximately $330m to $340m.