GREENCROSS BARKS UP THE MONEY TREE

Written on the 11 August 2015 by Brisbane Business News

GREENCROSS BARKS UP THE MONEY TREE GREENCROSS (ASX: GXL) has lodged another successful year, with the pet company increasing its revenue and NPAT substantially.

The Greencross network has grown 35 per cent in the past year, contributing to a 75 per cent increase in revenue to $644.5 million and a 77 per cent increase in underlying NPAT to $38.2 million.

Shareholders will receive a fully franked final dividend of 9 cents per share, paid on 18 September, which represents a dividend payout ratio of approximately 50 per cent.

Sales, store openings and vet clinic acquisitions all drove these figures up, and the company's EBITDA suggests the trend will continue despite a consolidating veterinary services sector.

EBITDA increased 60 per cent to $86.8 million, a reflection of economies of scale and benefits from an integrated pet care model, according to the company.

Perhaps the biggest physical change experienced across the year was seen in the Greencross retail footprint, the network growing from 65 stores to 200 stores due to a City Farmers acquisition in July last year.

Greencross CEO Jeffrey David says the company is poised to further capitalise on a burgeoning industry.

"Greencross currently has a ~8 per cent share of the fast growing $8.7 billion Australasian pet care market and our aim is to achieve 20 per cent market share," says David.

"We estimate that 59 per cent of Australian families have easy access to at least one of our retail, grooming and veterinary service offerings.

"A key element of our strategy is to extend our customer reach by expanding our store and clinic network and developing our digital offering so as to increase the number of pet owners who can conveniently access our products and services."

The payoff of this integrated pet care approach is already perceivable, with the company estimating retail customers who expand their engagement to grooming and vet services spend five times as much.

"[It's] a win/win for our customers and our shareholders," says David.

This strategy differs from that of new Brisbane pet company on the block, NVC Limited (ASX: NVL), which will initially focus primarily on vet services.




Author: Brisbane Business News Connect via: Twitter

Latest News

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter