1. News
June 9, 2022

Dollarama reports 12.4% sales growth in first quarter of FY23

The retailer's operating income for the quarter grew by 24.4% to C$220.0m ($175.07m).

Canadian retail chain Dollarama has registered C$1.072bn ($851.5m) in sales for the first quarter (Q1) of the fiscal year 2023 (FY23), up by 12.4% from the same period of last year.

Driven by strong seasonal performance and higher sales of consumables, the company’s comparable-store sales grew by 7.3%, over and above the 5.8% growth recorded in Q1 2022.

For the three months to 1 May 2022, Dollarama’s earnings before interest, taxes, depreciation and amortisation (EBITDA) also increased by 20.9% to C$300.0m.

The company’s operating income for the quarter also grew by 24.4% to C$220.0m, representing 20.5% of its sales.

Dollarama recorded net earnings of C$145.5m for Q1, up from C$113.6m in the same period of FY22.

The company’s diluted net earnings per share (EPS) were C$0.49, up by 32.4% from Q1 2022.

Its gross margin fell slightly to 42.1% of its sales, compared with 42.3% in the first quarter of FY22.

Dollarama opened a net total of ten stores in Q1 2023, ending the quarter with 1,431 stores.

Dollarama president and CEO Neil Rossy said: “With the lifting of Covid-19 restrictions across Canada early in the quarter, we were pleased to see a double-digit increase in customer traffic, coupled with strong demand for our affordable, everyday consumables and seasonal goods.

“Our strong performance across key metrics in the first quarter reflects the relevance of our business model and positive consumer response to our value proposition in a high-inflation environment.

“Mindful of the challenging environment in which we are operating, we will continue to rely on the levers at our disposal to mitigate ongoing supply chain and cost pressures, while providing consumers with the best relative value on the market.”

Based in Montreal, Dollarama offers a range of consumable products, general merchandise and seasonal items both in-store and online.