December 10, 2009 / 2:59 PM / 9 years ago

UPDATE 1-Canada's Dollarama posts Q3 profit, shares rise

* Q3 EPS C$0.02 vs loss C$0.52/shr year-ago

* Q3 sales up 15 pct to C$312.8 mln

* Says Q3 comparable sales up 7.3 pct

* Shares rise 6 pct

Dec 10 (Reuters) - Dollarama Inc (DOL.TO), Canada’s largest operator of dollar stores, reported a quarterly profit on higher sales, helped by higher sales and a foreign exchange gain, sending its shares up 7 percent to a new year-high.

Dollarama, which went public in October, said same-store sales rose 7.3 percent during the quarter as the number of transactions and average size of transactions grew.

The company backed by private equity firm Bain Capital, with 594 locations across Canada, also said it attracted more consumers for merchandise priced above its traditional C$1 price point.

For the quarter ended Nov. 1, the company earned C$1.1 million ($1.04 million), or 2 Canadian cents a share, compared with a loss of C$22.2 million, or 52 Canadian cents a share, a year ago.

Excluding items, such as charges related to the company’s initial public offering, it earned C$23 million, or 46 Canadian cents a share.

Dollarama, which recently raised C$300 through the IPO, said sales grew 14.8 percent to C$312.8 million.

Analysts on average had expected the company to earn 22 Canadian cents per share, on a revenue of C$309.5 million, according to Thomson Reuters I/B/E/S.

Dollarama shares were up 6 percent at C$22.35 in morning trade on the Toronto Stock Exchange. They touched a high of $22.49 earlier in the session. ($1=1.054 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Gopakumar Warrier)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below