Canada-based retail chain Dollarama has reported total sales of C$1.29bn ($966.3m) in the first quarter (Q1) of fiscal year (FY) 2024, up by 20.7% compared to the same period in FY23.

Sales for the quarter ending 30 April 2023 were driven by growth in stores portfolio and comparable store sales, which grew 17.1%, over and above the 7.3% increase in FY23.

Dollarama’s earnings before interest, taxes, depreciation and amortisation (EBITDA) also increased by 22.1% to C$366.3m ($274.4m), representing 28.3% of sales in Q1 FY24.

The retailer saw its operating income increase to C$277.6m ($207.34m), up 26.2% against the corresponding period a year ago.

Its net earnings for the period were C$179.9m ($134.3m) while diluted net earnings per share also increased by 28.6% to C$0.63 ($0.47) in Q1 FY24.

Dollarama opened 21 new stores, ending the quarter with 1,507 stores. It has plans for 2,000 store openings across Canada by 2031.

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By GlobalData

Dollarama president and CEO Neil Rossy said: “Canadians from all walks of life continue to respond positively to our compelling value proposition and affordable product mix. In the context of persistent inflationary pressure, we delivered a 17% increase in comparable store sales in the first quarter of fiscal 2024.

“We were also pleased to publish our 2023 ESG Report this morning, outlining our evolving ESG strategy, as well as our progress against our goals. The objective is to ensure that we continue delivering on our value promise to our customers and our shareholders as we advance our ESG priorities across our key pillars, from our climate strategy to our people, products and supply chain.”

The retailer expects comparable store sales to grow between 5.0% and 6.0% in FY24 while its gross margin was expected to be in the range of 43.5% to 44.5%.