Q2 2024 Pet Valu Holdings Ltd Earnings Call Transcript
Key Points
- Pet Valu Holdings Ltd (PTVLF) reported a 3% increase in revenue for Q2 2024, driven by contributions from 41 new stores opened over the last four quarters.
- The company saw a 7% increase in adjusted EBITDA, expanding adjusted EBITDA margins to almost 22%.
- Pet Valu Holdings Ltd (PTVLF) successfully launched Performatrin culinary, marking its first proprietary brand entry into the freezer category, with strong initial uptake.
- The company opened 5 new stores in Q2, bringing the total to 799 locations, and completed several renovations and relocations to modernize its network.
- Pet Valu Holdings Ltd (PTVLF) transitioned its website to a new platform, enabling greater adaptability and flexibility, and introduced several key customer-facing improvements.
- Same-store sales were flat year-over-year, with a 2.5% increase in average basket size offset by a 2.4% decline in transactions.
- Gross profit decreased by 5% from last year, with gross margin rate dropping to 33.1%, impacted by higher fixed distribution and occupancy costs.
- The company noted softness in discretionary hardlines, particularly in urban markets like Vancouver and Greater Toronto, affecting overall sales growth.
- Pet Valu Holdings Ltd (PTVLF) revised its 2024 revenue guidance down to between $1.08 billion and $1.11 billion, reflecting slower industry growth.
- Net income decreased to $18 million from $24 million last year, with adjusted net income remaining similar to last year at $26 million.
Good morning, everyone. Thank you for standing by. Welcome to Pet Valu's second-quarter 2024 earnings conference call. My name is Kiki, and I will be coordinating today's call. (Operator Instructions)
I would now like to turn the call over to James Allison, Investor Relations Head, Pet Valu. Please go ahead, Mr. Allison.
Good morning, and thank you for joining Pet Valu's call to discuss our second-quarter 2024 results, which were released this morning and can be found on our website at investors.petvalu.com. With me on the call is Richard Maltsbarger, President and Chief Executive Officer; and Linda Drysdale, Chief Financial Officer.
Before we begin, I would like to remind you that management may make forward-looking statements, which include guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties, which could cause actual results to differ materially from those expressed today. For a broader description of risks
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