20:19:25 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Pesorama Inc
Symbol PESO
Shares Issued 72,778,239
Close 2022-10-03 C$ 0.27
Market Cap C$ 19,650,125
Recent Sedar Documents

Pesorama talks Q2 sales, omits P&L from NR

2022-10-03 13:03 ET - News Release

Mr. Rahim Bhaloo reports

PESORAMA REPORTS Q2 2022 FINANCIAL RESULTS

Pesorama Inc. has released financial results for the three months ended July 31, 2022 (Q2 2022).

Key financial and operational highlights:

  • Multiprice points continue to lead to increased product assortment and increased growth of new product categories across all departments;
  • Sales increased by 45.4 per cent to $3,003,763 for the three months ended July 31, 2022, primarily from the opening of three additional stores since July 31, 2021, as well as organic growth from previously opened stores;
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $1,629,986 compared with a loss of $1,144,658 for the same period in 2021, primarily driven by additional public-company expenses, personnel and infrastructure to support growth;
  • Product gross margins were $1,095,618, or 36.5 per cent, for the three months ended July 31, 2022, compared with $779,650, or 37.8 per cent, for the same period in 2021, due primarily to rising material and transportation costs as a result of the COVID-19 pandemic.

"We are excited about the future growth of Pesorama as we explore various financing options to allow us to execute on our ambitious expansion plans," said Rahim Bhaloo, founder and executive chairman of Pesorama. "There is a tremendous opportunity in Mexico for us, as consumers continue to gravitate toward less expensive stores in the current inflationary market."

"We continue to see solid growth throughout all our stores," said Erica Fattore, president and chief executive officer of Pesorama. "We had a strong back-to-school campaign, and are well positioned for the upcoming Halloween and Christmas seasons. We have the team in place to grow the company and are very optimistic for the remainder of the year, particularly as we head into our busiest time of the year."

Outlook and growth

Subject to the availability of the necessary capital resources and other factors, the company's goal is to open five store locations per month starting in November, 2022, to increase its total number of JOi Dollar Plus stores to 50 by April, 2023. The company's current real estate pipeline consists of over 40 locations, which include traditional mall locations and stand-alone street front stores.

In what is expected to remain a complex environment, Pesorama is well positioned to pursue its goal of achieving profitable growth and to deliver on its purpose. The company is committed to providing Mexican consumers real value and convenient access to a broad range of affordable, everyday items at its JOi Dollar Plus stores.

In the second half of its fiscal year ending on Jan. 31, 2023 (fiscal 2023), the company expects to benefit from an improved sales environment compared with the same period last year, at which time various COVID-19 restrictions impacting retailers and consumer shopping patterns were in place. Supply chain and other inflationary pressures are expected to continue to be felt more in the remainder of fiscal 2023. The company will endeavour to mitigate some of the cost pressures on its gross margin. Selling, general and administrative expenses (SG&A), are expected to benefit from new standardized processes, scaling and better labour productivity. Based on the above, the company expects the following for the remainder of fiscal 2023:

  • To open 25 to 30 new stores;
  • To achieve improved sales-per-square-metre of approximately $37,600 pesos (approximately $2,444) per square foot;
  • Gross margin as a percentage of sales to be in the range of 42 per cent to 42.9 per cent.

This earnings news release should be read in conjunction with the company's interim condensed consolidated financial statements for the three-month period ending July 31, 2022, which can be found on Pesorama's issuer profile on SEDAR.

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 20 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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