Pet Valu’s sales jump 3% with supply chain expansion on the horizon

Canadian pet supply retailer Pet Valu posted C$21.8 million ($15.8M/€13.9M) in adjusted net income for the quarter ending 29 March, a 25% increase year on year (YoY). System-wide sales were C$366.1 million ($265.6M/€234.0M), an increase of 3.8% YoY. Same-store sales grew by 1.4%.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were C$58.7 million ($42.6M/€37.5M), up 3.8% YoY, accounting for 21% of revenue.

“We are off to a solid start to 2025, with our business delivering the results we expected in the first quarter,” CEO Richard Maltsbarger says. “Our effective commercial plan, together with strong in-store execution by our ACEs and franchisees, helped deliver a return to positive same-store sales growth and acceleration in revenue growth to 7%.”

Tariff strategy

The ongoing trade conflict has investors concerned. At an earnings call, the pet retailer said it is highlighting its brands, riding a wave of consumer sentiment against purchasing US goods.

CFO Linda Drysdale says the company was not expecting major impacts from tariffs between the US and Canada. However, it is preparing for larger barriers just in case.

“Our supply chain, replenishment and merchandising teams are taking actions now where it makes sense while identifying additional opportunities to implement greater agility should adaptations be necessary,” she states.

Outlook

The company reaffirmed its guidance for 2025. It expects revenue between C$1.17 billion ($850M/€750M) and C$1.20 billion ($870M/€770M) and approximately 40 new store openings.

Pet Valu expects EBITDA between C$254 million ($184M/€162M) and C$260 million ($189M/€166M) for 2025. It aims for same-store growth of 1% to 4%, after falling slightly below zero in 2024.

Maltsbarger told investors that the company was aiming to finish a large supply-chain expansion across Canada in the coming year, with the opening of a new facility in Alberta. “Our supply chain transformation is easily the single largest and most complex investment in our 49-year history,” he concludes.