Pet Valu Holdings recently announced a rise in fourth-quarter profit and revenue, surpassing analyst expectations despite current challenges in the consumer environment. The company expressed optimism that this positive momentum will continue into 2024.
Financial Performance
Pet Valu’s net income increased to 28.8 million Canadian dollars ($21.2 million), or C$0.40 per share, compared to C$25.9 million, or C$0.36 per share, from the same period last year. Adjusted earnings, excluding one-off costs and items, stood at C$0.54 per share, exceeding analyst projections of C$0.51 per share.
Revenue Growth
The Canadian pet food and accessory retailer saw a revenue increase of 7.8% to C$286.9 million from C$266 million in the previous year. System-wide sales also grew by 5.1% to C$379 million, with same-store sales up by 1.9%. Pet Valu noted that customers were making larger purchases per transaction this quarter.
Expansion and Outlook
During the period, the company opened 17 new stores, bringing the total number of stores within its network to 783. President and CEO Richard Maltsbarger emphasized that Pet Valu successfully adapted to changing consumer demands, achieving growth in line with expectations. The company is anticipating this growth trajectory to continue in 2024.
Future Projections
Pet Valu forecasts revenue to reach between C$1.11 billion and C$1.14 billion, with an expected same-store sales growth of 2% to 5%, surpassing the C$1.06 billion revenue recorded in 2023. Adjusted earnings per share are predicted to range between C$1.57 and C$1.63, an increase from C$1.61 per share.