Canadian discount retailer Dollarama has reported surging full-year sales and profits as it unveiled its new chief executive.
Dollarama posted a 29.6% increase in EBITDA to $597.5m (£320.7m) during the year ending January 31. Total sales advanced 13.7% to $2.65bn (£1.42bn) during the period, driven by a 7.3% jump in like-for-likes and 75 net new store openings.
Dollarama also hailed the impact of a “good” fourth quarter, helped by “ideal” weather conditions, which it said prompted “a strong customer response” to its seasonal proposition.
EBITDA grew 25.5% to $189.9m (£101.9m) in the shorter 13-week period, as like-for-like sales spiked 7.9%. Total sales increased 14.6% to $766.5m (£411.4m) during the quarter.
It said changes to the product mix and prices during the final quarter of the year bore fruit and would stand it in good stead to manage currency headwinds in its current financial year.
Boss Larry Rossy said: “These excellent results highlight Dollarama’s enduring strengths – the compelling value and breadth of our product offering, our highly capable leadership team, great execution throughout the supply chain and store network, as well as cost discipline and attention to detail.
“We are proud of the shopping experience Dollarama offers Canadians today and we remain focused on meeting and exceeding our customers’ expectations every time they shop in our stores.”
Larry Rossy will step up to the role of executive chairman and hand the chief executive baton to his son, Neil, from May 1.
Neil Rossy, who is Dollarama’s chief merchandising officer, has been a member of the retailer’s board since 2004.
He has worked at the business since it was founded in 1992, serving in a range of roles and becoming involved in strategic decisions across different areas of the business, including warehousing and distribution, sourcing product development and merchandising.
Neil Rossy said: “I am excited to take the helm of a company that is part of my DNA and thank the board for its confidence in me.
“For over 20 years, I have been fortunate to work directly and intimately with a great Canadian entrepreneur, an experience that has prepared me well for these new responsibilities.
“I will continue to work with our talented team, including Larry, to lead Dollarama’s growth in the years to come.”
Larry Rossy added: “Neil is a proven leader who knows the business inside out and has contributed tremendously to Dollarama’s growth. I look forward to focusing on my real estate and buying responsibilities while providing my full support to Neil and the rest of our management team as executive chairman.”