Toronto, Ontario–(Newsfile Corp. – July 5, 2022) – 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 three months ended April 30, 2022 (“Q1 2022“). All financial figures are in Canadian dollars unless otherwise noted:
Key Financial and Operational Highlights
- PesoRama continues to experience growth in its stores and sales, with two key store openings in Q1 2022: Cuernavaca and Cuemanco.
- Introduced multi-price points to increase product assortment and increase growth of new product categories across all departments.
- Entered into an agreement with a strategic partner to leverage freight cost efficiencies and service levels in supply chain and distribution logistics.
- Sales increased by 35% to $2,247,273 primarily driven by the opening of seven new stores in the year ended January 31, 2022 (“Fiscal Year 2022“) and increased volume at the Company’s previously opened stores.
- Adjusted EBITDA was ($1,312,684) compared to ($867,957), primarily driven by additional public-company expenses and investments in personnel and infrastructure to support growth.
- Adjusted gross margins were $938,721 or 41.8% compared to $761,757 or 45.9% due primarily to rising material and transportation costs as a result of the COVID-19 pandemic.
“We are extremely proud of the business we have built and the brand awareness we have gained as Mexico’s only true dollar store retailer in such a short period of time,” said Rahim Bhaloo, Founder and Executive Chairman of PesoRama. “The Company has achieved a lot over the past quarter, with our transition to a publicly-traded company, two new store openings, a strategic supply chain partnership, and the introduction of multi-price points to enhance product mix and value.”
“Solidifying our foundation is our focus for the near term,” said Erica Fattore, President & Chief Executive Officer of PesoRama. “This includes driving profitability in our existing stores, managing inventory levels, increasing store traffic and average ticket per visit, as well as optimizing the overall customer experience as we continue to add to our strong pipeline for future store locations. We are well capitalized to execute on our near-term priorities and are actively exploring opportunities to further strengthen our balance sheet with capital that will allow us to maximize shareholder value as we deliver on our growth plans.”
Outlook and Growth
PesoRama’s precision growth-oriented business model addresses the gap between local bodegas and big box retailers and has proven highly successful as the Company continues toward its goal of opening 500 stores over the next 5 years. In 2022, PesoRama has opened two new stores in Mexico: Cuernavaca and Cuemanco.
JOi Canadian Stores offers a truly unmatched value proposition in the Mexican market – discounted general merchandise and everyday high-quality staples at affordable prices that cater to a wide array of client segments. By strategically targeting high-traffic, easily accessible locations close to established major retailers with a complementary client mix, the Company is able to attract customers who desire convenience and consistency. The newest store opening, PesoRama’s first street front location, has proven to be a great success, with increased brand awareness and increased foot traffic. The Company intends to move forward with the addition of this type of model in the next round of store builds. The Company will continue to optimize efficiencies within its stores as well as build on its unmatched customer experience and overall satisfaction.
Supply chain efficiencies are a core competency for PesoRama. In April 2022, PesoRama entered into a strategic partnership with an established retail conglomerate allowing the Company to leverage its economies of scale and service levels. PesoRama is not reliant on China as a supplier of goods, having recently diversified its partners from areas as diverse as South Asia and Europe. Additionally, PesoRama has established a strong in-house team to manage the logistics, warehousing, and distribution of its broad product assortment. The Company’s distribution center in Mexico is strategically located to optimize delivery cost and time.
As part of the store maximization strategy, the Company has added various new brands and products to store shelves to better serve customer needs and wants. The Company is also in the process of rolling out its multi-price point strategy to broaden product range, increasing the growth of new categories across all departments (i.e., adding pots and pans to the kitchen department) to enhance customer loyalty. PesoRama believes this strategy will help increase the average ticket per customer and traffic to its stores through a broader offering. The newly added price points are 30 and 35 pesos and the Company will look to test additional price points in the future.
This earnings news release should be read in conjunction with the Company’s interim condensed consolidated financial statements for the three-month period ending April 30, 2022, 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 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.
For further information please contact:
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, 2022.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/129941
NOVASPARKS EXPANDS ITS OPERATIONS IN ASIA-PACIFIC
NovaSparks™, the leading field programmable gate array (FPGA) market data company, is pleased to announce the appointment of Clément Pelletier as the new sales and marketing director, based in Bangkok, Thailand. Pelletier will report to Dr. Luc Burgun, CEO and president, beginning on December 1st, 2023.
“Clément possesses a wealth of experience that makes him unique in the industry,” said Luc Burgun, NovaSparks’ chief executive officer and president. “His thorough understanding of the sales process, particularly in the field of trading tools which he acquired over 20 years in Asia, makes him ideally suited to drive our sales and marketing initiatives in APAC. We are pleased to welcome Clément and look forward to his leadership in expanding our operations in Asia.”
Pelletier brings to NovaSparks solid experience in sales and marketing in Asia. Most recently, he served as sales director for the APAC office of Horizon Software, a global leader in electronic trading solutions and algorithmic technology. Prior to Horizon Software, he served as CEO of CPIT, an IT services and consulting, specialized in the Fintech industry, based in Hong Kong. Pelletier holds a Master of Engineering from INSA Lyon.
Broadridge Investment Management Technology Enhances Carlyle’s Private Credit and CLO Portfolio Management Operations
Global Fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR) announced today that its cloud-based solution, Sentry, has been implemented at global investment firm Carlyle in support of its private credit and collateralized loan obligation (CLO) portfolio management. The Sentry private credit and CLO portfolio management technology will enable Carlyle to more efficiently manage its deal pipeline, trade compliance and loan operations on a single platform, and scale operations as the platform grows.
“With increased demand in credit products and ongoing growth of our product offerings, we wanted the right technology that would enable us to scale up and achieve a platform approach,” said Jim Keogh, Carlyle’s Managing Director and Head of Operations for Global Credit. “Sentry has smoothly integrated with our technology stack and provides functionality that will improve our capabilities as we grow.”
“Working closely with Carlyle, we customized Sentry to specifically suit their portfolio management requirements, which emphasized the need to help manage all aspects of private credit and CLO administration,” said Mike Sleightholme, Broadridge’s president of international and head of asset management solutions. “This implementation really showcases the value of the flexibility and scalability our solution offers and how it helps position firms for growth.”
Broadridge’s Sentry PM is a scalable web-based solution that provides front-to-back-office functionality to both the private debt and syndicated loan markets to increase overall efficiency, including research and pipeline management, pre- and post-trade compliance, analysis of hypothetical trade scenarios, dynamic waterfall projections, loan administration, and data aggregation across strategies, portfolios and assets.
Nuvei enters global payments partnership with Microsoft
Nuvei Corporation (“Nuvei” or the “Company”) (Nasdaq: NVEI) (TSX: NVEI), the Canadian fintech company, announces today that it has partnered with Microsoft to deliver leading payment experiences for customers of its products, solutions, and services across many of its key markets.
Microsoft will start using Nuvei’s customizable and agile payments technology in the Middle East and the Africa region, while benefiting from Nuvei’s deep knowledge of local markets to optimize its payments for recurring billing and individual transactions across both its Office and Xbox product ranges.
Other benefits of Nuvei’s global payments capabilities Microsoft is harnessing include optimized authorization rates through local acquisition and superior risk management that minimize false declines, as well as Nuvei’s ability to offer all of the relevant local alternative payment methods (APMs) to each market through a single integration. Philip Fayer, Nuvei Chair and CEO said: “Enabling Microsoft to connect to its customers across a wide range of products is testament to our technology and dedication to world-class customer service. We’re excited to optimize payments for such a universal brand that is trusted and relied upon by so many people.”
“We’re pleased to extend our payment solutions to the Middle East and African region,” added Ajith Thekadath, Vice President Global Payments at Microsoft. “Whether it is a one-off purchase, software subscription, or in-game purchasing, payments are critical to our overall customer experience. Partnering with Nuvei enables our customers to pay wherever they are and whenever they want to.”
Extending the partnership across geographies and use cases
Nuvei and Microsoft are committed to extending this partnership across additional markets, as well as exploring new use cases to enhance the overall Microsoft experience. This includes Microsoft Dynamics 365, its business applications technology suite that drives operational efficiency and improved enterprise resource management.
Fayer commented: “As two innovative, technology-led businesses that provide solutions to many of the leading international brands across the globe, it makes sense to explore how we can work more cooperatively as we grow our commercial relationship.”
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