Dollarama plans expansion to Mexico, posts rise in quarterly earnings

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Dollarama Inc. has increased its stake in Latin American retailer Dollarcity to 60.1 per cent with the acquisition of an additional 10 per cent interest.

With the rising cost of food, more and more shoppers are now getting their groceries at dollar stores. Retail expert Rocco Matteo joins Global’s Laura Casella to discuss this phenomenon, and what it could mean for consumers going forward – Sep 21, 2023. has increased its stake in Latin American retailer Dollarcity to 60.1 per cent with the acquisition of an additional 10 per cent interest.

The Montreal-based company says it acquired the additional stake in exchange for 6,060,478 Dollarama common shares. The shares were worth a total of about $761.7 million based on Dollarama’s share price of $125.68 on Tuesday. Dollarama also has acquired an option to buy an additional 9.89 per cent stake in Dollarcity at any time on or before Dec. 31, 2027.Dollarama and the Dollarcity founding stockholders also announced that they have agreed on governance terms for the expansion of the business to Mexico.Dollarama and the Dollarcity founding stockholders will indirectly have an 80.05 per cent and 19.95 per cent interest, respectively, in the Mexican portion of the business.

The deal came as Dollarama reported a profit of $215.8 million or 77 cents per diluted for its quarter ended April 28, up from a profit of $179.9 million or 63 cents per diluted share a year earlier.Bank of Canada should consider better communication of monetary policy: IMF

 

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