Pet Valu Holdings Ltd., the leading Canadian specialty retailer of pet food and pet-related supplies, announced Tuesday that system-wide sales and revenue in the third quarter, ending September 28, were up compared to a year ago.
“Third quarter performance tells a story of continued resilience and responsible execution as we delivered 5% revenue growth and 13% Adjusted EBITDA growth in a constrained demand environment,” said Richard Maltsbarger, Chief Executive Officer of Pet Valu, in a news release.
“We also reached an important milestone in our supply chain transformation with the successful transition and start-up of our new Surrey DC, unlocking incremental capacity and productivity in Western Canada.
“As we ramp up for the holidays, our merchandising and marketing teams have crafted an exciting slate of events delivering value and expertise to devoted pet lovers when they need it most. Supported by hundreds of local stores, a sharpened digital platform and an enhanced supply chain network, our curated offering of competitively priced premium products will help inspire magical holiday moments with pets.”
Highlights of the company’s Q3 include:
- System-wide sales were $358.2 million, an increase of 0.3% versus Q3 2023. Same-store sales growth was -2.5%;
- Revenue was $276.0 million, up 5.2% versus Q3 2023;
- Adjusted EBITDA was $64.6 million, up 13.0% versus Q3 2023, representing 23.4% of revenue. Operating income was $40.4 million, up 8.0% versus Q3 2023;
- Net income was $23.2 million, up from $18.0 million in Q3 2023;
- Adjusted Net Income was $29.9 million or $0.41 per diluted share, compared to $28.2 million or $0.39 per diluted share, respectively, in Q3 2023;
- Opened 6 new stores and ended the quarter with 805 stores across the network;
- Officially opened the new Metro Vancouver Region (“MVR”) distribution centre;
- The Board of Directors of the Company declared a dividend of $0.11 per common share.
The company said it expects revenue between $1.08 and $1.10 billion, supported by approximately 40 new store openings and flat same-store sales growth, Adjusted EBITDA between $243 and $246 million, and Adjusted Net Income per Diluted Share between $1.50 and $1.53 for 2024.
Pet Valu is Canada’s leading retailer of pet food and pet-related supplies with over 800 corporate-owned or franchised locations across the country. The company, which has been around for about 45 years, is headquartered in Markham, Ontario and its shares trade on the Toronto Stock Exchange (TSX: PET).
