Pet Valu Holdings Ltd., the leading Canadian specialty retailer of pet food and pet-related supplies, announced Tuesday its financial results for the first quarter ended March 29, 2025 with system-wide sales growing by close to 4%.
“We are off to a solid start to 2025, with our business delivering the results we expected in the first quarter,” said Richard Maltsbarger, Chief Executive Officer of Pet Valu. “Our effective commercial plan, together with strong in-store execution by our ACEs and franchisees, helped deliver a return to positive same-store sales growth and acceleration in revenue growth to 7%.
“We look to build on this momentum as we move through the year, leveraging our differentiated merchandising strategy and agile operating structure to succeed in today’s evolving environment. All the while, we continue to advance the strategic investments to fuel long-term growth and profitability, such as the approaching completion of our supply chain transformation.”
First Quarter Highlights from Pet Valu
- System-wide sales were $366.1 million, an increase of 3.8% versus Q1 2024. Same-store sales growth was 1.4%.
- Revenue was $279.1 million, up 7.0% versus Q1 2024.
- Adjusted EBITDA was $58.7 million, up 3.8% versus Q1 2024, representing 21.0% of revenue. Operating income was $37.4 million, up 12.2% versus Q1 2024.
- Net income was $21.8 million, up from $17.5 million in Q1 2024.
- Adjusted Net Income was $25.4 million or $0.36 per diluted share, compared to $25.3 million or $0.35 per diluted share, respectively, in Q1 2024.
- Opened 7 new stores and ended the quarter with 830 stores across the network.
- The Board of Directors of the Company declared a dividend of $0.12 per common share.
Pet Valu said Fiscal 2025 will be a 53-week fiscal year for Pet Valu, compared to a 52-week fiscal year in Fiscal 2024. Including the impact of the 53rd week of operation in Fiscal 2025, the company said it expects:
- Revenue between $1.17 and $1.20 billion, supported by approximately 40 new store openings, same-store sales growth between 1% and 4% and higher wholesale merchandise sales penetration;
- Adjusted EBITDA between $254 and $260 million, which incorporates continued price investments and normalization of operating expenses;
- Adjusted Net Income per Diluted Share between $1.60 and $1.66, which incorporates approximately $12 million pre-tax, or $0.12 per diluted share, of incremental depreciation and lease liability interest expense associated with the new distribution centres;
- Transformation costs of approximately $13 million pre-tax, and share-based compensation of approximately $11 million pre-tax, both of which are excluded from Adjusted EBITDA and Adjusted Net Income per Diluted Share; and
- Net Capital Expenditures of approximately $35 million.
“The Company is closely monitoring the evolving governmental foreign trade environment and believes it has the appropriate mechanisms in place to adapt, as necessary,” it said.
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