Pet Valu offers rosy outlook as it grows market share in lucrative pet industry
MARKHAM, Ont. — Canadian pet food and supplies retailer Pet Valu Holdings Ltd. offered an ambitious outlook for 2023 on Tuesday, saying it expects to grow revenue, increase sales and expand its share of the lucrative pet industry market this year.
The forecast, part of its latest earnings release, includes projected revenue of more than a billion dollars, driven by anticipated same-store sales growth of up to 10 per cent.
The company also plans to open between 40 and 50 new stores this year.
The outlook came as the company raised its dividend and reported a profit of $25.9 million in its latest quarter, down from $26.7 million a year earlier.
Pet Valu said it will now pay a quarterly dividend of 10 cents per share, up from six cents per share.
The increased payment to shareholders came as its profit amounted to 36 cents per diluted share for the 13-week period ended Dec. 31, down from 37 cents per diluted share a year earlier.
Revenue totalled $266 million, up nearly 20 per cent from $223.1 million in the same quarter a year earlier, helped by higher retail sales and the company's acquisition of Les Franchises Chico Inc.
Same-store sales growth came in at 11.8 per cent, boosted by a 4.6 per cent increase in same-store transactions and a 6.9 per cent increase in same-store average spend per transaction.
The company opened 16 new stores during the quarter, with Pet Valu now boasting 744 stores across its network.
On an adjusted basis, Pet Valu said it earned 43 cents per diluted share in its fourth quarter, up from 41 cents per diluted share in the fourth quarter of 2021.
In its outlook for 2023, the company said its adjusted net income per diluted share is expected between $1.60 and $1.66 for the year.
This report by The Canadian Press was first published March 7, 2023.
Companies in this story: (TSX:PET)
The Canadian Press