Dollarama Inc Q3 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : With respect to Dollarcity contribution, we're seeing an acceleration there in terms of the contribution, at least looking at the last few quarters in terms of year-over-year growth. Wondering if this is a COVID anomaly year-over-year or if there's any specific issues or items that you'd like to call out on that Dollarcity business that's leading to these results?

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : And how would the margins of Dollarcity compared to Dollarama? Obviously, as the business grows, we would anticipate some favorable operating leverage, but give us the delta on the, let's say, EBITDA margin versus the Canadian business?

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : Okay. And just changing topics here. With respect to the media reports on the latest variance of COVID-19 associated concerns, are you seeing any changes in consumer behavior recently in your stores?

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : Okay. And maybe a last one here on SG&A. Obviously, a lot of moving parts and the market is reacting very quickly. But with respect to Dollarama's ability to control the controllables, are there any major efficiency projects that we should be thinking about for fiscal '23 to control these various pressures? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 08, 2021 / 3:30PM, DOL.TO - Q3 2022 Dollarama Inc Earnings Call

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Do you mind just elaborating on the labor situation. So everybody knows about the labor shortage. It seems particularly acute in Quebec. So are you able to attract employees? Have you had to curtail opening hours in any stores? I mean are you -- have you had to increase wages? Could you just work your way through all that thinking?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And so Neil, just to confirm, there's been no curtailment of store hours? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 08, 2021 / 3:30PM, DOL.TO - Q3 2022 Dollarama Inc Earnings Call

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And then just my -- the other question I want to ask about. There was a discussion earlier about Dollarama's long-term strategy in terms of not being a price leader, your price follower to make sure you maintain that brand messaging of compelling value. So can you talk a little bit then, like how are you seeing that your competitors thus far are handling these increases in COGS inflation. So I think you look at your competitive set is Walmart and drugstores and certain other Dollar stores. Do you have any insights yet as to how they're behaving because you're going to follow along as you indicated on what they do.