Pet Play Greencross Profit Edges Higher
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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.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.