Slide 1: Q4 2024 Financial Results
Q4 2024 Financial Results May 28, 2025
Slide 2: Cautionary Forward-Looking Statements
Cautionary Forward-Looking Statements This presentation includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and there are, or may be deemed to be, “forward-looking statements” in this presentati
Slide 3: Business Update
Business Update Sarah Segal Chief Executive Officer & Chief Brand Officer 3
Slide 4: Fiscal 2024 was a pivotal turnaround year
Fiscal 2024 was a pivotal turnaround year ▪ Achieved progress across omnichannel business ▪ Strong customer traction at two new retail store locations ▪ Montreal Eaton Centre ▪ Royalmount Mall ▪ Expanded reach through Tea-2-Go partnership with Couche- Tard in 1,500+ Canadian stores and 900 U.S. groc
Slide 5: Growth Strategy—Path to Value Creation
Growth Strategy—Path to Value Creation Increase revenue by CAGR of between 10-12% over next Revenue Growth three years • Double number of retail stores in Canada • Accelerate wholesale expansion in U.S. Gross Profit Improvement • Enhance online presence Raise gross profit to 48-50% on a sustained ba
Slide 6: Current Store Network Footprint
Current Store Network Footprint 6
Slide 7: Financial Review
Financial Review Frank Zitella President, Chief Financial and Operating Officer 7
Slide 8: Operational Highlights — FY 2024
Operational Highlights — FY 2024 ▪ Fiscal 2024 was transformational ▪ Relocated and right-sized head office ▪ Consolidated three warehouses into two ▪ Optimized flow of inventory, better turnover and more responsive replenishment ▪ Strengthened in-house fulfillment, transitioned to more agile IT pla
Slide 9: At a Glance – FY 2024
At a Glance – FY 2024 ▪ Revenue reached $61.8 million ▪ Up $1.2 million or 1.9% from FY 2023 ▪ Adjusted EBITDA attained $3.9 million ▪ Improved $9.3 million from a year ago ▪ Adjusted net income totaled $0.1 million ▪ Compared to Adjusted net loss of $9.5 million in the prior year ▪ Cash position am
Slide 10: Sales
Sales Quarterly Annual (in millions of CAD$) (in millions of CAD$) 30 (4.6%) 75 1.9% 24.4 60.6 61.8 25 23.2 60 20 45 15 30 10 5 15 0 0 Q4 2023 Q4 2024 FY 2023 FY 2024 ► Impacted by an extra selling week in Q4 2023 and ► Mainly due to higher brick-and-mortar sales postal strike 10
Slide 11: Quarterly Channel Sales
Quarterly Channel Sales 11.1% (5.6%) 9.8% E-Commerce $24.4M +0.6% $23.2M Q4 2023 53.8% Brick-and-Mortar Q4 2024 53.3% 35.1% Sales1 36.9% Sales1 (16.1%) Wholesale E-Commerce Brick-and-mortar Wholesale Total percentage of sales may not necessarily add up to 100% due to rounding of numbers. 1 11
Slide 12: Annual Channel Sales
Annual Channel Sales (1.2%) 14.8% E-Commerce 14.3% $60.6M +8.4% $61.8M FY 2023 51.7% FY 2024 50.1% Brick-and-Mortar Sales1 Sales1 33.5% 35.6% (2.0%) Wholesale E-Commerce Brick-and-mortar Wholesale Total percentage of sales may not necessarily add up to 100% due to rounding of numbers. 1 12
Slide 13: Comparable Store Sales Growth
Comparable Store Sales Growth Quarterly Annual 6.6% 6.9% (4.7%) (4.6%) Q4 2023 Q4 2024 FY 2023 FY 2024 ► Comparable store sales decreased 4.7% ► Comparable store sales increased 6.9% ► Sales per square foot increased 6.8% to $1,406 13
Slide 14: Quarterly Geographic Sales
Quarterly Geographic Sales (5.5%) 14.9% Canada 15.7% $24.4M +0.4% $23.2M Q4 2023 U.S. Q4 2024 Sales1 Sales1 85.1% (4.6%) 84.3% Total Canada United States Canada United States Total percentage of sales may not necessarily add up to 100% due to rounding of numbers. 1 14
Slide 15: Annual Geographic Sales
Annual Geographic Sales +2.1% 14.5% Canada 14.3% $60.6M +0.6% $61.8M FY 2023 U.S. FY 2024 Sales1 Sales1 85.5% +1.9% 85.7% Total Canada United States Canada United States Total percentage of sales may not necessarily add up to 100% due to rounding of numbers. 1 15
Slide 16: Gross Profit and Margin
Gross Profit and Margin Quarterly Annual (in millions of CAD$) (in millions of CAD$) 12 8.5% 11.2 35 21.9% 10.4 29.5 10 30 24.2 25 8 20 6 48.4% 47.8% 42.6% 15 39.9% 4 10 2 5 0 0 Q4 2023 Q4 2024 FY 2023 FY 2024 ► Due to better product margin, and lower freight, shipping and ► Driven by higher sales a
Slide 17: SG&A Expenses
SG&A Expenses Quarterly Annual (in millions of CAD$) (in millions of CAD$) 15 14.2 50 12 40 38.2 32.5 9 8.6 30 58.4% 6 20 62.9% 52.6% 37.1% 3 10 0 0 Q4 2023 Q4 2024 FY 2023 FY 2024 ► Driven by lower impairment, IT costs, employee compensation, ► Due to lower marketing costs, IT expenses, employee pr
Slide 18: Adjusted EBITDA
Adjusted EBITDA1 Quarterly Annual (in millions of CAD$) (in millions of CAD$) 5 6 4.0 3.9 4 4 2 3 2.8 0.1 0 2 -2 -4 1 0.5 -6 (5.4) 0 -8 (0.2) (8.5) -1 -10 Q4 2023 Q4 2024 FY 2023 FY 2024 ► Driven by higher gross profit and lower SG&A expenses ► Reflect higher gross profit and lower SG&A expenses Adj
Slide 19: Adjusted Net Income
Adjusted Net Income1 Quarterly Annual (in millions of CAD$) (in millions of CAD$) 4 2 2.7 0.1 3 2.5 0 2 -2 1 -4 (3.2) 0 -6 -1 (0.5) -8 -2 -10 (9.5) -3 -12 -4 -14 (3.9) (13.8) -5 -16 Q4 2023 Q4 2024 FY 2023 FY 2024 Adjusted Net Income1 Net Income 1 Non-IFRS measure - refer to the Appendix section of
Slide 20: Cash Position
Cash Position (in millions of CAD$) 20 Solid cash position of $16.2 million and 3.6M 16.2 no debt 15 12.6 10 7.9 5 Strong free cash flows of $9.4 million in 0 Q4 2024 and $7.3 million in FY 2024 Q4 2023 Q3 2024 Q4 2024 20
Slide 21: Wrap-Up
Wrap-Up 1 Fiscal 2024 was a defining year 2 Focused beyond on delivering sustained profitable growth in 2025 and 3 Tribute to founder Herschel Segal 21
Slide 22: Appendix
Appendix 22
Slide 23: Condensed Consolidated Financial Data
Condensed Consolidated Financial Data Reconciliation of Net Income (Loss) to EBITDA For the three-months ended For the year ended February 1, February 3, February 1, February 3, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Net income (loss) $ 2,499 $ (3,863) $ 6,362 164.7% $ (3,210) $ (13
Slide 24: Condensed Consolidated Financial Data
Condensed Consolidated Financial Data Reconciliation of Adjusted EBITDA to Adjusted EBITDA (after rent equivalent expense) For the three-months ended For the year ended February 1, February 3, February 1, February 3, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Adjusted EBITDA (1) $ 4,029
Slide 25: www.davidstea.com
www.davidstea.com