Revenues for a group of pet sector companies grew in the first half of 2022, but at a slower rate than the same period in 2021. Cascadia Capital follows an index of publicly traded pet industry stocks, including Nestlé, J.M. Smucker, Chewy, FreshPet, Central Garden and Pet Company, Neogen, Virbac and Zoetis, along with other pet care, veterinary and insurance companies.
Stock prices for pet industry companies in the index declining 40.8%, compared to a decline of 21.4% in the overall S&P 500, by the end of the second quarter of 2022.
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Revenue for those pet industry companies index grew 5.6% in the first half of 2022, versus 20.7% in the prior-year period, according to Cascadia Capital’s report “Pet Industry Overview: Fall 2022.” Adjusted earnings for those companies declined 9.2% in the first half of 2022, compared to growth of 30.0% in same period last year. Earnings for the index haven’t surpassed the peak reached in the first half of 2021.
Cascadia’s analysts believe profitability was challenged by slower revenue growth and higher supply chain costs, as inflation affected many aspects of business. Nestle Purina stock followed the S&P500 index most of the year, ending October within a few percentage points of the index. Both declined between 15% and 20% compared to prices at the beginning of the year. J.M. Smucker stock beat the S&P, increasing by slightly more than 10% compared to prices at the beginning of January. Freshpet stock declined more rapidly that the S&P500, finishing October nearly 40% lower than the beginning of the year.
Tim Wall covers the dog, cat and other pet food industries as a senior reporter for WATT Global Media. His work has appeared in Scientific American, Live Science, Discovery News, Honduras Weekly, Global Journalist and other outlets. He holds an M.A. in journalism and an M.S. in natural resources, both from the University of Missouri - Columbia, along with a bachelor's degree in biology.
Wall served in the Peace Corps in Honduras from 2005 to 2007, where he coordinated with the town government of Moroceli to organize a municipal trash collection system, taught environmental science, translated for medical brigades and facilitated sustainable agriculture, along with other projects.
Contact Wall via https://www.wattglobalmedia.com/contact-us/
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