€3.6 billion: Fressnapf’s strategic expansion pays off

International expansion and operational optimization have been credited with helping German pet retailer Fressnapf | Maxizoo post solid revenue growth of 5% for its fiscal year (FY) 2024.

The company achieved total group sales revenue of €3.6 billion ($4.1B) and adjusted EBITDA reached €342 million ($386M), driven by milestones such as successfully closing the Arcaplanet acquisition in Italy and a strategic shift toward empowering local markets.

“Our 2024 results are a direct outcome of strategic foresight and operational agility,” explains interim CFO Sebastian van Stiphout on a conference call attended by GlobalPETS.

“As the pet market adjusted to pre-pandemic realities, we adapted early. This decisive, customer-centric execution enabled us to strengthen our position within Europe.”

Fressnapf reported a gross external revenue of €4 billion ($4.6B) in 2023. The German pet retailer confirmed to GlobalPETS that the reporting has changed to net revenues from this financial exercise, and that the 5% increase is therefore based on that.

2,700 stores

International markets have become increasingly important, now accounting for 64% of total group revenue. The company’s operations extend across 15 countries, including 8 where it is the market leader.

This includes franchise stores and those where it holds minority stakes. The company operates 2,709 stores, including 188 that it opened in 2024, with a focus on key markets in France, Italy and Poland.

However, its German homeland remains its largest market, followed by Italy, France and the Alpine region. The company holds an 18% share across its core markets and views Poland as a key growth market in the medium term. Italy, France and Germany together account for more than 70%.

“We have the financial foundation for investments in strategic areas and are well-positioned for sustainable growth across Europe,” says van Stiphout.

Local agility

However, the importance of these local markets to the overall success of the business extends beyond geographical reach and market share; it’s also heavily focused on operations. The company’s strategy to shift responsibility to local markets is paying off, allowing for more agile decision-making closer to consumers.

Ensuring that customer service meets evolving demand has also been important, with a focus on competitive omnichannel pricing, sharper product assortment and the launch of Click & Collect in selected countries, which already accounts for 7% of e-commerce sales.

Ensuring stores are stocked is another key metric of success for a retailer, and Fressnapf has been bolstering its logistics operations.

“Our investment in our logistics network combined with refined assortment and improved product availability will drive strong improvements in our logistics efficiency, resulting in lower cost and better service for our customers and partners,” adds Fressnapf’s interim CFO, who will be succeeded by Florian Wieser at the end of the year.

Fressnapf has also recently announced the appointment of Matt Simister as its new CEO, effective September 2025.

E-commerce operation

The company’s e-commerce operation accounts for 13% of total group revenue, but von Stiphout says setting a target is difficult because, while there is a general trend toward online shopping, the company does not differentiate between online and store sales strongly.

“Our belief and also our USP is that we have to do a connection of both channels via our omnichannel offer,” he says.

“For example, the rollout of Click & Collect, if you look at that, this is an offer where the customer orders online but picks up in the store. So you could, of course, account for these sales in the online channel or in the store channel. In the end, it doesn’t matter because it’s a transaction which takes place at Fressnapf.”

And van Stiphout is clear that physical stores are a key ingredient for success.

“The differentiation between the channels does not make so much sense anymore if you are a true omnichannel player,” he states. “But we still think that also the pure online sales will increase further. But there is a clear advantage also of the store concept in the pet market.”