Peet’s Coffee & Tea, a US-based premier specialty coffee and tea company, has reported 7% increase in net revenue to $94.8m for the first quarter ended 1 April 2012, compared to $88.5m during the same period in 2011.

The company’s diluted earnings per share was $0.25 at the end of 2012 first quarter against $0.41 during the same period in 2011.

Retail net revenue was $54.1m, a rise of 4%, in 2012 first quarter against $52.1m during the same period in 2011, mainly due to a 5% growth in sales of beverages and pastries, and rise in whole-bean and related sales.

Peet’s Coffee & Tea added one outlet during the 13 weeks of fiscal 2012, which raised the total number of store locations to 197 at the end of the first quarter.

The company’s specialty net revenue was $40.7m, an increase of 12%, against $36.4m in same period in 2011.

In the 2012 first quarter, its foodservice and office sales increased 16%, and home delivery sales remained unchanged compared to the corresponding period in 2011.

Peet’s Coffee & Tea president and chief executive officer Patrick O’Dea said the first half of 2012 would be challenging for the company.

"In the first quarter we faced the highest coffee cost inflation of the year, and while our results reflect it, they were in line with our expectations," O’Dea said.

"As we previously indicated, we expect to gain significant momentum in the second half as coffee cost inflation abates, and we remain excited about the strategic growth initiatives we’re investing in this year."