Dollar General reported higher fourth-quarter profits as steady demand for low-cost essentials drove store traffic across its network of rural locations.

The discount retailer’s net sales rose 5.9 per cent to $10.9 billion in the fourth quarter ending January 30, up from $10.3 billion a year earlier. Same-store sales increased 4.3 per cent.

Meanwhile, its operating profit more than doubled to $606.3 million, up 106.1 per cent compared with the prior-year period.

Dollar General said sales growth during the quarter was driven by higher comparable-store sales and contributions from new store openings.

For the full year, net sales reached $42.7 billion, an increase of 5.2 per cent from $40.6 billion last year. Same-store sales rose 3 per cent, while operating profit climbed 28.6 per cent to $2.2 billion.

Dollar General CEO Todd Vasos said the results reflect progress from the company’s current business strategy.

“We are pleased with our strong fourth-quarter and full-year results, and I want to thank our employees for their unwavering commitment to serving others,” he said.

Looking ahead, Dollar General expects net sales to grow between 3.7 per cent and 4.2 per cent this year, with same-store sales projected to increase between 2.2 per cent and 2.7 per cent.

The retailer also plans to carry out about 4730 real estate projects this fiscal year, including opening around 450 new stores in the US and about 10 in Mexico.

“Looking ahead, we plan to drive continued growth through a variety of initiatives and extend our reach, while creating long-term shareholder value,” Vasos added.