Canadian natural and organic retailer Planet Organic has posted a dip in second-quarter earnings, despite a 16.8% jump in sales.
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Second-quarter sales increased to C$32.1m (US$24.9m), compared to C$27.5m reported in the second quarter of last year.
EBITDASX (earnings before interest, taxes, depreciation, amortization, stock-based compensation and foreign exchange gains or losses) dipped slightly to C$1.3m, down from C$1.8m in the comparable year-ago period.
However, the company posted a net loss of C$2.8m for the period, primarily the consequence of a foreign exchange loss of C$2.4m on US denominated debt.
“I am pleased with our EBITDASX under the current extreme economic environment,” CFO Darren Krissie said.
“Our largest divisions, Planet Organic Market and Mrs Green’s, both continue to show positive same store sales growth, which is extraordinary in this environment,” Krissie added.
The company said that it is current with all short- and long-term debt obligations, but revealed that it has breached a debt ratio agreement for the quarter.
Planet Organic said that it is in continuing discussions with its lenders and “anticipates that any events of default will be waived by the lenders”.
