GREENCROSS UNDERLYING NET PROFIT CLIMBS 10.3PC 08:47 AM Sue...

GREENCROSS UNDERLYING NET PROFIT CLIMBS 10.3PC

• 08:47 AM
• Sue Mitchell

is expecting another year of solid profit growth in 2017 after lifting underlying net profit by 10.3 per cent to $42.1 million in the year ended June 30, Sue Mitchell reports.
The underlying profit result, boosted by new stores, solid same-store retail sales growth and higher gross margins, exceeded consensus forecasts of about $41.8 million and followed a 19 per cent rise in profits to $21.2 million in the six months ending June.
Underlying earnings before interest tax depreciation and amortisation rose 12 per cent to $97.5 million, falling slightly short of forecasts around $99 million.
Greencross said its full-year net profit rose 81.5 per cent to $34.62 million.
Sales rose 13.8 per cent to $734 million after Greencross opened 21 pet stores and 14 vet clinics, taking its total network to 376.
Same-store sales in pet care stores rose 3.4 per cent, despite a soft second half, when warm winter weather dented sales of bedding and coats.
The momentum continued into the new year, with same-store retails sales rising 2 per cent in July and 4 per cent in August. Vet GP clinic visits have risen 5 per cent so far this year, in line with 2016 growth levels.
Chief executive Martin Nicholas expects underlying net profit and EBITDA to rise at a similar rate in 2017.
"We have started the year in line with these expectations," he said.
Greencross increased its final dividend by 0.5¢ to 9.5¢ a share, payable September 23, taking the full year payout to 18.5¢.

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Greencross full-year financial report.


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