Slide 1: June 18, 2024
June 18, 2024
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” within the meaning
Slide 3: FY 2023 financial summary
v OOOO. i: OOOOOOE ssa OOOG $60.6M 39.9% Revenue Gross margin $13.8M ($5.4M) Net loss Adjusted EBITDA’ xxcludes the impac ny’'SMD&A fora full
Slide 4: Easy-to-use & Innovative Accessories
~10% Easy-to-use & Innovative Accessories
Slide 5: Operational Highlights for FY 2023
Operational Highlights for FY 2023 Brought fulfillment operations in-house to improve customer experience and reduce costs = Lowered SG&A expenses by $8.0 million’ as part of cost-containment plan = Initiated wholesale expansion into northeast U.S. to replicate success in Canadian market = Strengthe
Slide 6: Go-to-Market Strategy for FY 2024
Go-to-Market Strategy for FY 2024 FLAGSHIP STORES Opening two new stores in the fall of 2024 (currently 18 in Canada) Anticipate doubling store footprint over the next three years Positive store experience creates spillover effect on online sales WHOLESALE PARTNERS Partnerships with Big Box wholesal
Slide 7: Corporate Social Responsibility
Corporate Social Responsibility Our Corporate Social F Responsibility portfolio encompasses: Aligned with the UN Sustainability Development Goals, our sustainability strategy focuses on three pillars: = Addressingrisks at tea origins where we source our tea = Ethical & Sustainable Tea Sourcing = Sta
Slide 8: Financial Results for Q1 2024
Financial Results for Q1 2024 ‘Adjusted EBITDA is a non-IFRS measure and excludes the impact of stock-based compensation expensesand software implementation costs. See the Company's MD8A fora full reconciliationto the most directly comparablemeasure calculatedin accordancewith IFRS.
Slide 9: Early Progress in FY 2024
Early Progress in FY 2024 1. Brick-and-mortar sales improved 6.2% YoY in Q1 2024 = Second consecutive quarter of sales growth = Higher average ticket values drove sales increase 2. Transitioned to national strategy for U.S. wholesale expansion = Expanding with new customers and distributors = Signed
Slide 10: Headwinds
Headwinds = Tough economic conditions reducing overall demand = Changes in online consumer behaviour = Short-term liquidity issue 10 DAVIDSTEA
Slide 11: Key Takeaways
Key Takeaways = Reported soft FY 2023 results due to challenging environment and shift away from online consumption to in-store retail shopping = Brought fulfillment operations in-house to improve customer service and reduce costs = Lowered SG&A expenses by $8 million on annual basis = Transitioned
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