Play Video
The Montreal-based company reported on March 29 that sales increased by more than 20 per cent to $1.47 billion, beating expectations of $1.39 billion in the fourth quarter ended Jan. 29. Earnings before interest, tax, debt and amortization increased almost 19 per cent to $467.7 million.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
For the full fiscal year, Dollarama’s earnings jumped nearly 17 per cent to $5.05 billion. Net earnings totalled $801.9 million, or $2.76 per diluted common share. Last fiscal year, net earnings were $663.2 million or $2.18 per diluted share. High levels of inflation have been a boost for Dollarama compared to other businesses, all of which are contending with tighter economic conditions after rising inflation forced the Bank of Canada to lift interest rates at an unprecedented pace starting last March.
The consumer price index, which measures inflation growth, peaked in June at 8.1 per cent and the latest reading pegged year-over-year price growth at 5.2 per cent, a steady decrease but still outside the Bank of Canada’s target of two per cent.
More expensive than Walmart