Pet Valu increases revenue and sales in Q1 2024, but income declines
The Canadian pet retailer forecasts more than $1 billion in revenue and up to 50 new stores by the end of the year.
Pet Valu saw a 3.9% increase in its system-wide sales to C$352.9 million ($257.2M/€239.4M) from January to March 2024. In Q1 2023, sales accounted for C$339.6 million ($246.8M/€229.7M).
Same-store sales also grew 0.8%, led by an increase in same-store average spending per transaction.
Revenue jumped 4.2% to C$260.8M ($189.5M/€176.4M) from C$250.3 million ($181.9M/€162.9M) in Q1 2023, mainly due to new franchises. Pet Valu opened 11 new stores and ended the quarter with a network of 794 locations nationwide.
Gross profit increased marginally to C$87.4 million ($63.5M/€59.1M) from C$87.2 million ($63.3M/€58.9M) last year.
Pet Valu’s operating income decreased by 4.5% to C$17.5 million ($12.7M/€11.8M) between January and March 2024, which the company describes as being due to “lower operating income, higher net interest expense partially offset by lower income taxes…and by the loss recognized on the derecognition of the call option related to an investment in associate included in Q1 2023.”
2024 targets
The company’s CEO and President, Richard Maltsbarger, tells investors that the business delivered a “solid performance” in Q1.
He expects “several key strategic initiatives” in Q2, including the robotization of its new 670,000-square-foot distribution center and an upgrade of Pet Valu’s digital platform, which will be completed at the end of the quarter.
The Canadian pet retailer expects to post revenue between C$1.11 billion ($806.9M/€750M) and C$1.14 billion ($828.9M/€771.1M) in 2024.
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