GXL Upgrade expansion plans

Greencross upgrades expansion plans

AAP – 55 minutes ago

Veterinary services and pet care retailer Greencross has upgraded its expansion plans after lifting first-half net profit by 17.2 per cent.
Net profit for the six months to December 31 was $21.9 million, after like-for-like sales lifted 4.3 per cent across the group.
Chief executive Martin Nicholas said the results showed that the company's integration strategy was working.
"The 2017 interim result is a strong endorsement of our integrated petcare strategy, which has delivered double-digit growth in revenue and earnings," he said in a statement on Tuesday.
Greencross added 16 stores to its retail network in the first half to bring the total number of retail outlets to 237.
Strong growth in revenue from services such as grooming, dog wash and obedience training, and record sales of dog and cat food drove like-for-like sales growth of 4.0 per cent across the group's retail operations.
"Following a strong first half, Greencross has upgraded its FY2017 full-year network expansion target to 21 stores," Mr Nicholas said.
Greencross opened 10 vet clinics in the first half to bring the total number of clinics to 164.
The veterinary division lifted like-for-like sales by 5.3 per cent, driven by a rapid ramp-up in visits to the group's in-store clinics and cross-referrals from the retail stores.
Greencross added seven in-store clinics in the first half and one in-store clinic in the current half to bring the number of veterinary clinics inside retail stores to 25.
The company said the in-store clinics were delivering superior economic returns.
"I am pleased to confirm that Greencross has now upgraded its FY2017 full-year expansion target to 16 in-store clinics," Mr Nicholas said.
Greencross expects full-year growth in group underlying earnings and net profit growth similar to that of 2016.
Its shares were 34 cents, or 5.13 per cent, higher at $6.97 at 1045 AEDT.
GREENCROSS TO KEEP EXPANDING AS PROFIT LIFTS
* First-half net profit up 17.2pct to $21.9m
* Revenue up 13.7pct to $412.3m
* Interim dividend up 1.5 cents to 9.5 cents, fully franked