Canadian value retailer Dollarama has reported a robust 16.1% increase in sales for fiscal 2024 (FY24), reaching C$5.86bn ($4.33bn) - up from C$5.05bn in FY23.
This significant growth is attributed to an expansion in the total number of stores and an increase in comparable store sales by 12.8% for FY24.
Dollarama posted net earnings of C$1.01bn for the year, up from C$801.9m in 2023.
Its diluted net earnings per common share (EPS) also increased by 29.0% to C$3.56 in FY24 from C$2.76 the previous year.
During the fiscal year ending 28 January 2024, the retailer's earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a substantial rise of 22.2% to C$1.86bn, which translates to an EBITDA margin of 31.7%, an improvement from the 30.1% margin reported in the previous year.
Dollarama's operating income also experienced a sharp increase of 25.5%, climbing to C$1.49bn from C$1.19bn.
Throughout the year, Dollarama maintained its expansion pace by opening 65 new stores, matching the previous year's growth and bringing the total store count to 1,551.
In the fourth quarter of the fiscal year, the retailer’s sales rose by 11.3% to $1.64bn and comparable store sales grew by 8.7% against the same period of the previous fiscal year.
The operating income increased by 21.8% to C$464.7m in Q4 FY24, which represents an operating margin of 28.3%.
The retailer’s diluted net earnings per common share for the quarter also saw a significant rise of 26.4%, from C$0.91 to C$1.15.
Dollarama president and CEO Neil Rossy said: "In fiscal 2024, we met or exceeded our guidance for all our key performance metrics, including higher than expected comparable store sales, translating into a 29% increase in EPS.
“Our strong financial and operational performance demonstrates the enduring strength of our business model and that our compelling value proposition continues to resonate with consumers, including in an uncertain economic context."
Rossy added: "Looking ahead to fiscal 2025, we expect to generate strong comparable store sales growth of between 3.5% to 4.5%, over and above an exceptional two years of double-digit growth, by staying true to our value and convenience promise to Canadian consumers."
