Rampant inflation has prompted many people to seek bargains at Dollarama, as evidenced by the company’s meteoric rise in sales and revenues.
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The discount retail giant generated sales of $1.29 billion during the third quarter from August to October. This is an increase of 14.9% compared to the corresponding months in 2021.
The profit curve followed an almost identical trend with an increase in net earnings per share of 14.8%.
The products sold had cost about $730 million, generating nearly $560 million in gross profits, according to the quarterly report released Wednesday.
“As inflationary pressures continue to weigh on consumers, we expect strong demand for consumer staples to continue to drive sales growth through the end of the fiscal year. [2023]“, underlined by press release the president and chief executive officer of Dollarama, Neil Rossy.
Satisfied with these results, Dollarama intends to accelerate the development of its Dollarcity stores, a chain established in Central and South America in which the Montreal company owns 50.1%.
The Montreal flagship has raised its target in terms of points of sale, increasing it from 600 to 850 by 2029. To date, Dollarcity already has 395 stores in El Salvador, Guatemala, Colombia and Peru.
At the same time, Dollarama remains on course for its objective of having 2,000 points of sale in Canada by 2031, underlined the company which has exceeded the milestone of $ 3.5 billion in sales in the last nine months.