Pet Valu reports stronger FY2025 performance as store expansion continues

For the fiscal year (FY) 2025, ending 3 January 2026, Pet Valu reported CA$1.17 billion
($870M/€800M) in revenue, reflecting a 7.1% year-over-year (YoY) increase.

According to the Ontario-based pet retailer, revenue growth was driven primarily by higher
retail sales, as well as franchise and other revenues.

System-wide sales (which also comprise franchisees’ results) reached CA$1.53 billion
($1.13B/€1.04B), up 5.6% YoY. Same-store sales grew 1.6%, supported by a 1.7% increase in
same-store average spend per transaction, partly offset by a 0.1% decline in the number of
transactions.

Net income and gross profit

The retailer’s net income rose 11.9% YoY to CA$97.8 million ($72M/€67M), driven by higher
operating income, lower net interest expense and a gain on foreign exchange.

Meanwhile, gross profit increased 6.6% YoY to CA$388.8 million ($288M/€266M), while
gross profit margin stood at 33.1%, down 0.1 percentage point (p.p.) from the prior year.

Company developments

In FY2025, Pet Valu opened 40 new stores, including 14 in the fourth quarter (Q4). In July,
the company commenced operations at its new 295,000-square-foot distribution center in Calgary, Alberta.

These projects formed part of 150 renovations, expansions and relocations completed
during the period.

“At the end of Fiscal 2025, we operated 863 corporate-owned and franchised locations
across the country, supported by a full suite of e-commerce capabilities,” the company
noted.

In August, the company approved a succession plan promoting Greg Ramier, previously
President and COO, to CEO. He also joined the Board of Directors, effective 21 September.

Ramier succeeded Richard Maltsbarger, who transitioned into a senior advisor role to the
CEO until his retirement on 4 April.

Q4 performance

For the fourth quarter of FY2025, Pet Valu posted CA$326.4 million ($242M/€224M) in
revenue, up 10.6% YoY, driven by similar factors to those seen in the full year.

Same-store sales grew 0.3%, mainly due to a 0.5% increase in same-store average spend per
transaction, but partially offset by a 0.2% decline in transactions.

Net income for the period increased 1.6% YoY to CA$29.4 million ($22M/€20M), supported
by higher operating income and lower foreign exchange loss.

Gross profit rose 7.3% to CA$107.6 million ($80M/€74M), while gross profit margin
decreased by 1 p.p. to 33%.

Yearly guidance

For FY2026, Pet Valu expects revenue growth between 2% and 4%, supported by 40 planned
new stores. Adjusted net income is also expected to rise in the mid to high single-digits.

In addition, the retailer expects business reinvestment of approximately CA$35 million
($26M/€24M), consisting of approximately CA$20 million ($15M/€14M) in net capital
expenditures.