Sales up, profits down: PetMeds’ performance impacted by PetCareRx acquisition

PetMeds hit net sales of $281.1 million (€261.4M) in its fiscal year (FY) 2024 ending on 31 March 2024. This is a 9.5% year-on-year (YoY) increase from $256.6 million (€238.6M) in 2023.

Net loss amounted to $7.5 million (€6.9M) compared to a net income of $5.1 million (€4.7M) in FY 2023.

The yearly financials were driven by the acquisition of PetCareRx and partially offset by a decline in PetMeds’ legacy sales, according to the company.

Quarter overview

The last quarter of FY 2024 registered a 6.6% increase in net sales to $66.5 million (€61.8M).

Gross profit improved to $18.1 million (€16.8M) from $17.3 million (€16M) in the same period of 2023.

Net loss for Q4 increased to $5 million (€4.6M), compared to $0.2 million (€0.18M) in 2023. This was due to “additional G&A (general and administrative) costs, marketing expenses, and an increase in depreciation and amortization associated with the acquisition.”

Overall results were negatively impacted by a “challenging macro environment and industry dynamics,” says Sandra Campos, CEO and President. The implementation of a new Order Management System and Autoship platforms also affected the quarter’s performance negatively.

“We are moving swiftly to continue to improve our systems and processes to drive a better customer experience, along with investing in additional technology resources,” concludes Campos.

FY 2025 outlook

PetMeds plans to shift its strategic priorities to drive growth, improve profitability, and increase customer satisfaction metrics in the upcoming FY, ending in March 2025.

According to the CEO, consolidating business operations will “simplify our structure, reduce costs, and strengthen alignment across the organization.”

The Florida-based online pharmacy firm says it will lead with a comprehensive marketing plan and make investments in modern, customized technology frameworks.