Dollarama Inc. reported double-digit increases in sales and EBITDA in the second quarter as consumers search for value amid an inflationary environment.
The discount retailer on Wednesday released its earnings results for the quarter ending on Aug. 2, reporting a 17.6 per cent jump in sales to $2.03 billion from $1.72 billion in the previous year. Its EBITDA grew by 11 per cent to $653.0 million.
“At a time when households are making careful spending decisions, customers continued to count on Dollarama for dependable value,” chief executive Neil Rossy said in the earnings release.
The increase in sales was driven by a 5.4 per cent growth in comparable store sales in Canada, compared to 4.9 per cent in the previous year, as well as an increase in the total number of stores in Canada, as it opened 15 net new locations in the quarter.
It also was driven by the inclusion of a full quarter of sales in Australia compared to just a 13 day-period after its acquisition of The Reject Shop Ltd. , now Dollarama Australia Pty Ltd., in the second quarter of the previous fiscal year.
The company’s net earnings climbed 8.7 per cent to $349.3 million, resulting in an 11.2 per cent increase in diluted net earnings per common share to $1.29, compared to $1.16 the prior year.
Its operating income increased by seven per cent to $517.3 million, representing an operating margin of 25.5 per cent, down from 28 per cent.