Canadian retail chain Dollarama has reported that its earnings before interest, taxes, depreciation and amortisation grew by 24% to C$478.8m ($352.7m) in the third quarter (Q3) of fiscal 2024 (FY24), compared with C$386.2m in the same period in FY23.
The retailer’s net earnings for the quarter increased to C$261.1m from C$201.6m in Q3 FY23, and its diluted net earnings per common share for the period also increased by 31.4% to C$0.92, from C$0.70 a year previously.
During the 13 weeks ending 29 October 2023, sales of Dollarama increased by 14.6% to C$1.4bn, from C$1.2bn in Q3 FY23.
The increase was driven by growth in the total number of stores and an 11.1% increase in comparable store sales.
The retailer’s total number of stores increased from 1,462 to 1,541 over the 12 months to December 2023.
Dollarama delivered an operating income of C$386.7m in Q3 FY24, an increase of 27.8% from C$302.6m in Q3 FY23.
The company’s gross profit for the quarter was C$670.2m compared with C$558.7m in the same period of the previous year.
For FY24, Dollarama expects its comparable store sales to grow between 11% and 12%.
Dollarama president and CEO Neil Rossy stated: "Sustained consumer demand for our broad range of affordable everyday products and strong execution in the third quarter of fiscal 2024 drove double-digit same-store sales growth for a sixth consecutive quarter as well as over 31% earnings per share growth.
“Our financial and operational performance year-to-date reflects the strength and relevance of our value proposition and business model in a challenging macro-economic context."
