Pet Valu Holdings, the leading Canadian specialty retailer of pet food and pet-related supplies, announces its financial results for the third quarter ended September 30, 2023.
Third quarter highlights
- System-wide sales(1) were $357.2 million, an increase of 7.7% versus the prior year. Same-store sales growth was 4.2%, primarily supported by same-store average spend per transaction growth(1) .
- Revenue was $262.3 million, an increase of 7.2% versus the prior year, in-line with system-wide sales growth.
- Adjusted EBITDA(2) was $57.2 million, up 0.4% versus the prior year, representing 21.8% of revenue. Operating income was $37.4 million, down 13.7% versus the prior year.
- Net income was $18.0 million, down from $27.0 million in the prior year.
- Adjusted Net Income(2) was $28.2 million or $0.39 per diluted share, compared to $30.7 million or $0.43 per diluted share, respectively, in the prior year.
- Opened 8 new stores and ended the quarter with 766 stores across the network.
- Officially opened the new Greater Toronto Area ("GTA") distribution centre.
- The board of directors of the company declared a dividend of $0.10 per common share.
The company expects 2023 revenue between $1,055 and $1,065 million, driven by same-store sales growth between 5.5% and 6.5% and 35-40 new store openings, Adjusted EBITDA between $230 and $233 million and Adjusted Net Income per Diluted Share(2) between $1.60 and $1.63.
"We delivered 8% top-line growth and took a significant step forward in our supply chain transformation with the opening of our new GTA distribution centre in the quarter," said Richard Maltsbarger, president and chief executive officer of Pet Valu. "I am proud of the actions our teams took to swiftly adapt to evolving consumer demand, while continuing to drive same store sales growth through innovative product launches, targeted promotions, and enriched digital experiences.
"As we enter the final stretch of 2023, our full-year outlook reflects the resiliency of our business and the Canadian pet industry and our ability to grow across different business cycles," continued Maltsbarger. "We look forward to delivering an engaging commercial program this holiday season and our innovative new product launches. We are also excited about our recently launched wholesale distribution expansion out of our new GTA distribution centre, enabling us to begin tapping into a significant new revenue opportunity selling to our Chico franchisees in the Quebec market."