September 14, 2010 / 12:23 PM / 8 years ago

UPDATE 1-Dollarama Q2 profit falls on higher expenses

* Q2 EPS C$0.28 vs C$0.61 yr ago

* Sales up 13 pct

* Same-store sales grow 8 pct

Sept 14 (Reuters) - Dollarama Inc (DOL.TO), Canada’s largest operator of dollar stores, reported a 21 percent drop in quarterly profit on higher expenses.

For the second quarter ended Aug. 1, net income fell to C$21.0 million ($20.45 million), or 28 Canadian cents a share, from C$26.6 million, or 61 Canadian cents a share, a year ago. On an adjusted basis, the company earned 37 Canadian cents a share.

Sales for the company, which has more than 600 locations across Canada, rose 13 percent to C$343.5 million, driven mainly by net addition of 38 stores since Aug. 2, 2009, and by same-store sales growth of 8 percent.

Analysts on average were expecting earnings of 35 Canadian cents a share, on revenue of C$339.1 million, according to Thomson Reuters I/B/E/S.

General, administrative and store operating expenses rose 13 percent to $67.1 million.

Shares of Dollarama, which went public in October 2009, closed at C$26.95 Monday on the Toronto Stock Exchange. They have gained more than 20 percent of their value in the last six months. ($1=1.027 Canadian Dollar) (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Maju Samuel)

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