Pet Valu’s 25.6% revenue growth puts it at CAD 200.7 million in Q3

Pet Valu saw a 12.9% increase in same-store transactions and a 6.6% increase in same-store average spend per transaction.

Gross profit

Its gross profit increased by $20.4 million (35.2%) compared to Q3 2020. The main reasons behind its gross profit margin increase was driven by:

• The favourable impact of the stronger Canadian dollar on products sourced outside Canada and primarily denominated in U.S. dollars
• Leverage gained on fixed costs due to higher revenue
• Higher discounts in Q3 2020
• Partially offset by the absorption of incremental freight costs due to global supply chain issues, distribution costs driven by e-commerce sales, and incremental wages in our warehouses to support increased demand

“We are incredibly pleased with the strong performance our business delivered in the third quarter, with every aspect of our operating model contributing to this success,” said Richard Maltsbarger, President and Chief Executive Officer. “Pet Valu continued to outpace the robust growth in the pet industry due to the strength of our brand as well as our unique and engaging customer experiences, underscoring our position as Canada’s pet authority.

“Given the strong performance in Q3 and momentum in early Q4, we have raised our 2021 guidance. As we move through the balance of the year and into 2022, we are proactively managing current market challenges in supply chain, labour and inflation with purposeful investments that support our long-term growth strategies,” continued Mr. Maltsbarger.