As online pet food sales increase in the US, China and India, so do sales for German-based online retailer of pet food, zooplus AG. Zooplus continued its growth trend in the first half of 2017, and for the first time, the company reached sales of more than EUR500 million in a half-year period.
Based on preliminary figures, sales in the first half of 2017 rose 21 percent to EUR517 million. Sales adjusted for currency effects increased by 22 percent. As in the first quarter of 2017, double-digit growth rates were once again achieved in all 30 regional markets. Sales in the second quarter grew 18 percent year-on-year (currency-adjusted 19 percent).
This development can mainly be attributed to a stronger focus on new customers, according to a company press release. Business with existing customers continued to yield a sales retention rate of a record 94 percent on a currency-adjusted basis.
According to a financial report published on the company’s investors website in May 2017, zooplus generated earnings before taxes (EBT) of EUR3.4 million in the first three months of 2017, which is equivalent to a year-on-year increase of EUR0.5 million.
The increase in zooplus sales on a currency-adjusted basis was 25 percent over the previous year. The growth driver in the first quarter of 2017 was the pet food segment. Sales in this segment increased 26 percent during the quarter.
"With year-on-year sales growth of 21 percent in a fiercely competitive market environment, growth was slightly behind our expectations,” said Dr. Cornelius Patt, CEO of zooplus AG, commenting on the business development of the first half-year. “We continue to see very positive performance in our existing customer business as shown by the sales retention rate of 94 percent. The focus on an even more sustainable business with new customers has led initially to a slight decline in our first sales with new customers. We expect to see a positive overall effect from this change in the months to come."
Based on the business performance in the first half-year and the current assessment of the sales development, the Management Board of zooplus AG has confirmed its 2017 full-year sales forecast of at least EUR1,125 million. Zooplus will publish its full report for the first half of 2017 on August 22, 2017 and will make it available on the company’s investors website.
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