RECORD RESULT FOR GREENCROSS

RECORD RESULT FOR GREENCROSS
STRONG sales have driven Greencross Limited (ASX: GXL) to a record result with the company's underlying NPAT being up 81 per cent to $19 million.

Revenue was up 34 per cent from the previous corresponding period to $307.5 million, while underlying EBITDA was up 62 per cent to $41.6 million, excluding the one off acquisition and integration costs of City Farmers.

The underlying businesses performed strongly over the period across all geographic segments. The result was driven by the City Farmers acquisition, new store openings and vet acquisitions.

GXL CEO Jeffrey David says it is a "very pleasing result".

"In a period where YTD we have strengthened our growth platform by increasing our location count by 30 per cent or 75 locations to 321, our team has again delivered Group LFL sales growth of 6.3 per cent underpinning total sales growth of 43 per cent," says David.

"This translated into a 48 per cent increase in EPS to 17.2c and represents 48 per cent of our full year FY2015 underlying EPS guidance of 36 cents, which we again reconfirm."

In the first six months of this fiscal year, GXL has added 61 retail stores and 14 clinics to its network.

GXL is currently working on integrating Greencross and Mammoth the veterinary and retail divisions of the business.

This is in effort to streamline the pet care process and lift counter sales.

Retail remerchandising has been completed in 30 veterinary clinics to date, with a further 50 planned for completion by the end of fiscal year 2015.

"Our focus is to make it easier for our customers to enjoy their life with their pet, and it's a win/win for our customers and us," says David.

"A great example is our puppy preschool program where our vet and retail teams are able to work together to provide behavioural training to puppies and at the same advise the new pet parents on the products that they will need to make the puppy's entry into its new family happier."

GXL's half year dividend has increased by 45 per cent to 8c per share, to be paid on March 31.


Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Cannon-Brookes launches shareholder campaign against AGL demerger

Cannon-Brookes launches shareholder campaign against AGL demerger

Australian billionaire and Atlassian co-founder Mike Cannon-Brookes...

Action film The Fall Guy starring Ryan Gosling to inject $244m into the Australian economy

Action film The Fall Guy starring Ryan Gosling to inject $244m into the Australian economy

The Australian economy is expected to receive a $244 million inject...

Board clean-out on the cards for The Star as review told of mass resignation plan

Board clean-out on the cards for The Star as review told of mass resignation plan

The review of Star Entertainment Group (ASX: SGR) by the NSW gaming...

Gold Coast economy ‘turbocharged’ and tipped to outperform in post-pandemic rebound

Gold Coast economy ‘turbocharged’ and tipped to outperform in post-pandemic rebound

The Gold Coast economy is poised for a sharp post-pandemic recovery...