UPDATE 1-Dollarama posts higher profit, raises dividend

Fri Apr 12, 2013 9:10am EDT

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April 12 (Reuters) - Canadian dollar-store operator Dollarama Inc reported a 21 percent rise in quarterly profit as it sold more items priced above C$1.00, and the company raised its dividend by 27 percent.

Net income increased to C$77.1 million ($76.3 million), or C$1.04 per share, in the fiscal fourth quarter, ended Feb. 3, from C$63.6 million, or 84 Canadian cents, a year earlier.

Sales climbed 20 percent to C$561.9 million. The quarter included 14 weeks, compared with 13 a year earlier. The 14th week accounted for C$32.1 million in sales.

Analysts had expected earnings of C$1.02 a share on sales of C$546.3 million, according to Thomson Reuters I/B/E/S.

Dollarama, which operates 785 stores across Canada, said same-store sales grew 4.6 percent in the quarter. Customers spent more during each visit, while the number or transactions held steady.

The board approved an increase in the quarterly dividend to C$0.14 per share from C$0.11. The dividend is expected to remain at this new level, the company said.

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