GXL Expands Pet Care Empire

COMPANIES

Greencross expands pet care empire


Greencross vet Yari Mansai with Pepper the border collie.

• DAVID WINNING
• Dow Jones
• 2:32PM February 21, 2017
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Greencross has reported a 17 per cent rise in half-year net profit as it established more vet clinics and pet-care shops across Australia and New Zealand, and said it was confident of increasing earnings at the same pace as the previous fiscal year.
The company (GXL) said its statutory net profit totalled $21.9 million in the six months through December, up from $18.7 million a year earlier. After stripping out one-off items, half-year profit rose by 9 per cent to $23 million.
Directors declared an interim dividend of 9.5 cents a share, increasing from a payout of 9 cents at the same stage of the 2016 fiscal year.
Greencross, which fended off a $770 million bid from a consortium including TPG and The Carlyle Group last year, has been vying for a bigger share of the pet-care market through completing acquisitions, deepening a loyalty program and setting up vet clinics inside stores.
Chief executive Martin Nicholas said the first wave of in-store clinics performed ahead of expectations in its fiscal first half, and the company has upgraded its full-year expansion target to 16 clinics.
“Greencross continues to expect strong cash flow conversion in the 2017 fiscal year with underlying EBITDA and net profit growth at similar levels to the 2016 fiscal year,” Mr Nicholas said, reiterating guidance provided in August.
Current trading supported that forecast, said the Brisbane-based company, which operates under the Petbarn and City Farmers brands in Australia and the Animates brand in New Zealand. Same-store sales at week 32 of its fiscal year were up 4.3 per cent, while sales at its Australian vet clinics rose by 5.7 per cent.
Dow Jones Newswires