Pet food and cat litter drive Pet Valu’s performance

Pet Valu’s second-quarter system-wide sales totaled C$343.9 million ($254.7M/€232.8M‎), a 10.1% increase compared to the same quarter of 2022. 

Most of the revenue (80%) came from its 2.6 million active loyalty members, the company said.

Revenue in the quarter was up 12.6% at C$256.4 million ($189.9M/€173.6M‎). The company’s quarterly report states that the heightened figure was boosted by growth in retail sales. 

Gross profit was up 7.9% at C$92.1 million ($68.2M/€62.3M‎) from C$85.4 million ($63.2M/€57.8M‎) in Q2 2022.

Pet Valu’s President and CEO Richard Maltsbarger says he is “pleased” with Q2 and the company’s “strong performance for the first half of 2023.”

“Our double-digit growth in consumables, such as pet food and cat litter, makes it clear our expert level customer service, curated offering of premium products and strengthening omnichannel shopping capabilities continue to resonate with devoted pet lovers across Canada.”

Net income

Net income decreased from C$25.3 million ($18.7M/€17.1M) in Q2 2022 to C$24.1 million ($17.8M/€16.3M‎) due to increased selling and general administrative expenses.

The decline in net income follows from Q1, which recorded C$18.7 million ($13.9M/€12.7M) compared to C$22.6 million ($16.8M/€15.3M) in the first quarter of the previous year. 

Leading the market 

According to Canadian consulting firm Fusion Analytics, Pet Valu is in the top spot for leading market share, at 18%, just above its competitor PetSmart with 15%.

The pet retailer claims to have an “unrivaled network” across Canada with a broad customer reach, as 74% of Canadians are located within 5 km of a store.

7 new stores were opened between April and June, bringing Pet Valu’s total outlets to 758. The retailer plans to open 40–50 new stores by the end of the year.

The company has maintained its guidance for the full year and estimates total revenue between C$1.05 billion ($778.2M/€711M‎) and C$1.07 billion ($793M/€724.6M‎) this year.