PesoRama reports 2024 financial results

• The company has secured a $20 million senior secured credit facility

• Sales increased 41% to $20,523,521

• Gross profit increased 44% to $6,994,697

• Product gross margins increased 2.3% to 42.4%

• Store profits increased 59% to $1,696,715

• Same-store sales increased 14% in 2024 compared to 2023

Toronto, Ontario – (Newsfile Corp. – May 22, 2024) – PesoRama Inc. (TSXV: WEIGHT) (“WeightRama” or the “Company“), a Canadian company that operates dollar stores in Mexico under the JOi Canadian Stores brand, today announced its financial results for the year ending January 31, 2024 (“Fiscal year 2024“). All financial values ​​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 Rahim Bhaloo, founder and executive chairman of PesoRama. “Creating a new market space requires strategic thinking, operational excellence and execution, which is reflected in our financial results. During fiscal 2024, we saw an increase in store traffic of 15.6% compared to fiscal 2023. 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 presence and brand loyalty. We believe that our growth strategy is being proven by our success. and we are meeting the needs of the cost-conscious buyer in an underserved market that will ultimately drive long-term value for our shareholders.”

Key Financial Highlights: 2024 vs 2023

• Multiple pricing continues to lead to increased product variety and the growth of new product categories across all departments.

• Store profits increased 59% to $1,696,715 for the year ending January 31, 2024, an increase of $627,062 from the year ending January 31, 2023.

• Total sales increased 41% to $20,523,521 due to organic growth at existing stores as well as our two new stores opening in November and December 2023.

• Gross profit increased by $2,145,036 to $6,994,697, driven primarily by an increase in revenue of 41% compared to an increase in cost of sales of 40%.

• Product gross margins increased 2.3% from $5,821,479, or 40.1%, to $8,696,378, or 42.4%, primarily due to an increase in revenue from the introduction of the multiple pricing and assortment mix, which resulted in a higher selling price per item and increased demand.

Other performance metrics: 2024 vs 2023

• Sales units increased by 12% due to increased demand, increased assortment and product mix.

• Same-store sales increased 14% in 2024 compared to 2023.

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Main achievements in 2024

• On June 9, 2023, the Company secured a $20 million senior secured credit facility to finance its expansion plans.

• On November 17, 2023, the Company opened its 22nd JOi Dollar Plus store in Tlalnepantla, Mexico. This 458 square meter location marks the company’s first independent JOi store and strategically positions PesoRama in the first square in the municipality of Tlalnepantla, located 13 kilometers from downtown Mexico City, close to major retailers, schools, banks and hospitals, store is strategically positioned to meet the diverse needs of the local community.

• On December 1, 2023, the Company opened its 23rd JOi Dollar Plus store in Iztapalapa, Mexico. Located in the Complejo Industrial Tecnológico neighborhood, the 425 square meter store strategically serves the approximately 1,835,486 inhabitants of the municipality, located 16 kilometers from the center of Mexico City. The opening is in line with PesoRama’s confidence in its expansion plans, anticipating greater growth in Mexico.

This earnings release should be read in conjunction with the Company’s consolidated financial statements for the year ended January 31, 2024, which can be found on PesoRama’s issuer profile on SEDAR at www.sedarplus.ca.

About PesoRama Inc.

PesoRama, operating under the JOi Canadian Stores brand, is a Mexican retailer of dollar value stores. PesoRama began operations in 2019 in and around Mexico City, targeting high-density, high-traffic locations. PesoRama’s 23 stores offer consistent merchandise offerings that include items in the following categories: household items, pet supplies, seasonal products, party supplies, health and beauty, snacks, confectionery and more.

For more information, please contact:

Rahim Bhaloo
Founder and Executive President
rahim@rahimbhaloo.com
416-816-3291

Non-IFRS measures

There are measures included in this press 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 that certain investors use them as a means of evaluating financial performance. Adjusted gross margin, EBITDA and Adjusted EBITDA are financial measures that do not have standardized meanings in IFRS. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA refers to earnings before interest, taxes, depreciation, amortization, share-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 disclose unaudited quarterly and audited annual 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 supplement 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 in measuring its operating results.

Management believes that investors and financial analysts measure our business on the same basis, and we are providing adjusted gross margin, operating profit, EBITDA and adjusted EBITDA as financial metrics to assist in this assessment and provide a greater level of transparency about how we measure our own business.

Adjusted EBITDA is more fully defined and discussed, and the reconciliation to IFRS financial measures is provided in the Company’s Management’s Discussion and Analysis (“MD&A”) for the year ended January 31, 2024.

Warning Note

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 deemed appropriate . Although the Company believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on it because the Company can give no assurance that it will prove to be correct. Readers are cautioned not to 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 behavior, general economic factors, the Company’s ability to execute its strategies, the availability of capital and risk factors which are discussed further details in the “Risk Factors” section of the Company’s prospectus dated January 31, 2022 and filed under the Company’s profile at www.sedarplus.ca. The statements in this press release are made as of the date of this release. PesoRama assumes no obligation to comment on analyses, expectations or statements made by third parties in relation to PesoRama, its securities or its financial or operational 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.

To view the original version of this press release, please visit https://www.newsfilecorp.com/release/210166

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