MONTREAL — Gildan Activewear Inc. reinstated its dividend as it swung to a US$98.5-million profit in the first quarter with help from a U.S. pandemic support program for cotton users.
The Montreal-based company, reporting in U.S. dollars, says it earned 50 cents per diluted share for the three months ended March 31, compared with a loss of 50 cents per share or US$99.3 million a year earlier.
Excluding one-time items, the adjusted profit was US$95 million or 48 cents per share, up from US$11.2 million or six cents per share in the first quarter of 2020.
The company said its profits included a nine-cents-per-share one-time benefit from the USDA's pandemic assistance for cotton users program.
Revenues were US$589.6 million, up 28 per cent from US$459.1 million a year earlier and down about five per cent from the first quarter of 2019.
Gildan was expected to report 18 cents per share in adjusted profits on US$483.3 million in revenues, according to financial data firm Refinitiv.
The company says it was reinstating its quarterly dividend of 15.4 cents per share.
“While large events have not yet restarted, we continue to be encouraged by the strength of our imprintables business and on the retail side we were pleased with strong double-digit growth in underwear and activewear sales compared to the first quarters of 2020 and 2019," stated CEO Glenn Chamandy.
This report by The Canadian Press was first published May 5, 2021.
Companies in this story: (TSX:GIL)
The Canadian Press