- The Company secured a $20M senior secured credit facility
- Store profits increased by 123% to $118,342
- Sales increased by 98% to $4,446,781
- Gross profits increased by 261% to $1,305,685
- Product gross margins increased by 10.7% to 41.3%
TORONTO, ON – June 28, 2023 – PesoRama Inc. (TSXV: PESO) (“PesoRama” or the “Company“), a Canadian company operating dollar stores in Mexico under the JOi Canadian Stores brand, today announced its financial results for the first quarter ended April 30, 2023 (“Q1 2023”). All financial figures are in Canadian dollars unless otherwise noted.
“As the only true dollar store company in Mexico, we are constantly innovating and pushing the boundaries of what is possible,” said Erica Fattore, President & CEO of PesoRama. “Creating a new market space requires strategic thinking, operational excellence, and execution, which is reflected in this quarter’s results. During Q1 2023, we saw a significant increase in-store traffic of 46%, and our average ticket grew by 14.2% over Q1 2022. We attribute this to the success of our unique merchandising strategies, product assortment, and overall customer experience. Our JOi Dollar Plus Stores are increasing in popularity as we continue to expand our footprint and raise the bar in our market. We believe we have the winning strategy and we are meeting the needs of the cost-conscious shopper in an underserved market that will ultimately drive long-term value for our shareholders. We have big ambitions and will continue to think outside the box to set ourselves apart.”
Key Financial Highlights: Q1 2024 vs Q1 2023
- Multi-price points continue to lead to increased product assortment and increased growth of new product categories across all departments.
- Store profits increased by 123% to $118,342 for the three-months ended April 30, 2023, an increase of $630,953 from the three months ended April 30, 2022.
- Total sales increased by 98% to $4,446,781 due to organic growth of previously opened stores as well as sales from new stores which opened in April 2022, May 2022 and December 2022.
- Gross profits increased by $944,063 to $1,305,685, primarily driven by an increase in revenue of 98% compared to an increase in cost of sales of only 67%.
- Product gross margins increased by $1,836,518 or 41.3% compared to $686,599 or 30.6% due primarily to an increase in revenue for higher prices items resulting from the introduction of the multi-price strategy and assortment mix.
Other Performance Metrics: Q1 2024 vs Q1 2023
- Sales units increased by 44% as a result of increase in demand, increased product assortment and mix
- Same store sales increased by 43% in Q1 2023 compared to Q1 2022
- Average ticket increased by 14.2%
Key Achievements YTD 2023
- On June 9, 2023, the Company secured a $20M senior secured credit facility to finance their expansion plans
- In January 2023, the Company closed a private placement through the issuance of 17,760,264 units of the Company at a price of $0.15 per Unit for gross proceeds of $2,664,039.60. Each Unit was comprised of one common share and one common share purchase warrant.
This earnings news release should be read in conjunction with the Company’s condensed consolidated interim financial statements for the three-month period ending April 30, 2023, which can be found on PesoRama’s issuer profile on SEDAR at www.sedar.com.
About PesoRama Inc.
PesoRama, operating under the JOi Canadian Stores brand, is a Mexican value dollar store retailer. PesoRama launched operations in 2019 in Mexico City and the surrounding areas targeting high density, high traffic locations. PesoRama’s 21 stores offer consistent merchandise offerings which include items in the following categories: household goods, pet supplies, seasonal products, party supplies, health and beauty, snack food items, confectionery and more.
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Founder & Executive Chairman
President & Chief Executive Officer
There are measures included in this news release that do not have a standardized meaning under international financial reporting standards (IFRS) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use them as a means of assessing financial performance. Adjusted gross margin, EBITDA and Adjusted EBITDA are financial measures that do not have a standardized meaning under IFRS. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA refers to earnings before interest, taxes, depreciation, amortization, stock-based compensation, one-time transaction expenses and financing costs. Adjusted gross margin is defined as gross profit plus distribution costs divided by sales.
We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP (Generally Accepted Accounting Principles) financial information used to evaluate our performance in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as adjusted gross margin, EBITDA, and adjusted EBITDA in making investment decisions about the Company and measuring its operational results.
Management believes that investors and financial analysts measure our business on the same basis, and we are providing the adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA as financial metrics to assist in this evaluation and to provide a higher level of transparency into how we measure our own business.
Adjusted EBITDA is more fully defined and discussed, and reconciliation to IFRS financial measures is provided, in Company’s Management’s Discussion and Analysis (“MD&A”) for the three-month period ended April 30, 2023.
This press release contains “forward-looking information” within the meaning of applicable securities laws, including, among other things, statements regarding the Company’s planned expansion, new store openings and expected future developments and other factors that have been considered appropriate. While the Company believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements, including due to changes in consumer behaviour, general economic factors, the ability of the Company to execute its strategies, the availability of capital and the risk factors which are discussed in greater detail in the “Risk Factors” section of the Company’s prospectus dated January 31, 2022 and filed under the Company’s profile on www.sedar.com. The statements in this press release are made as of the date of this release. PesoRama undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of PesoRama, its securities, or its financial or operating results (as applicable).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.