Pet care giant Greencross saw its shares hit a two month high yesterday after it revealed a pick up in sales growth in the opening weeks of 2016-17.
Greencross shares rose 31 cents to $7.19. The closed up 4.6% at $7.12.
After weak sales in the closing months of 2015-16, Greencross says sales strengthened in September and October.
CEO, Martin Nicholas told yesterday’s annual meeting that same-store sales across the group in the year were up 3.9% in the first quarter the new financial year which started on August 1.
While this is down on the 6% rate seen a year earlier and the 4.4% seen over 2015-16, it is faster than the fall seen in May and 2% rate seen in July.
Mr Nicholas told shareholders the company expected underlying earnings and net profits to grow at similar levels to 2016 – when underlying net profit rose 10% – underpinned by solid same-store sales and revenues from new stores and vet clinics (http://clients.weblink.com.au/news/pdf/01793233.pdf).
Greencross chairman Stuart James told the meeting the company is on track to deliver 20 new stores and 15 new in-store clinics in the 2017 financial year as well, as part of the expansion program that helped it lift profit 81.5 per cent to $34.6 million last financial year.
“I believe that Greencross is well positioned to deliver another solid year of growth for our shareholders,” he said in an address to shareholders.
Greencross is Australia’s largest specialist pet care chain, now owns about 376 outlets under the brands Petbarn, City Farmers, Animates and Greencross Vets.
So far this year it has opened 12 stores and three in-store clinics and acquired three vet practices. Last year it opened 21 retail stores and 14-in-store clinics in 2016 and acquired nine independent vet clinics.
