Pet Valu Holdings, a specialty pet retailer based in Canada, reported a steady start to 2025 with increases in revenue, profits, and store count during the first quarter ending March 29.
Revenue rose 7% from the same period last year, reaching CA$279.1 million. This growth came mostly from increased earnings from franchise fees and other services, despite a slight dip in retail sales.
Same-store sales — which reflect performance at locations open for at least a year — grew 1.4%. That modest increase was largely due to customers spending more per visit, even as the total number of transactions slipped slightly.
“We are off to a solid start to 2025, with our business delivering the results we expected in the first quarter,” said Richard Maltsbarger, CEO 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%.”
Profits also improved:
- Net income grew to CA$21.8 million, up from CA$17.5 million a year earlier.
- Operating income rose 12.2% to CA$37.4 million.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 3.8% to CA$58.7 million, representing 21% of revenue.
During the quarter, Pet Valu opened seven new stores, bringing its total to 830 locations across Canada.
Looking ahead, the company expects full-year revenue to fall between CA$1.17 and CA$1.20 billion. It is also forecasting adjusted earnings of up to CA$260 million and capital investments of approximately CA$35 million.
“We look to build on this momentum as we move through the year,” Maltsbarger said, “leveraging our differentiated merchandising strategy and agile operating structure to succeed in today's evolving environment.”
He also pointed to long-term investments, such as the company’s ongoing supply chain upgrades, as key to future growth.
Despite gains in revenue and profits, Pet Valu’s gross profit margin narrowed slightly to 33%, partly due to changes in product mix and higher distribution costs.
Adapted from a press release.
