Petcare group, Greencross lifted first-half profit nearly 6% to $23.2 million in the six months to December 31 off the back of a 9% rise in sales to $433 million.
The company lifted interim dividend by half a cent to 10 cents a share.The company says revenue for the 26 weeks to December 31 rose 5.1% – despite the prior corresponding period containing 27 weeks – with key like-for-like sales growing 4.5% and eight new stores opening.
On a like for like basis (26 weeks in both halves), revenues were up 9%. Greencross forecast full-year like-for-like sales growth of 4.2%. The company’s about to retire CEO, Martin Nicholas said in yesterday’s statement
"Our Australian Retail division achieved 6% revenue growth and LFL sales growth of 4.0%. Excellent trading over the Christmas period, higher premium food sales and growth in online were all key contributors to a good retail result. First half retail gross margin of 47.4% was particularly pleasing given that it was achieved in a period where we saw higher promotional intensity from our competitors and Amazon launched its Australian platform.
"Our Veterinary division achieved 14% revenue growth and delivered 5.9% LFL sales growth, with in-store GP clinics and specialist and emergency hospitals being the key growth drivers.”
Thumbs down from investors and the shares closed off 3.7% at $5.92.
