Petbarn owner flags expansion plans
Petcare specialist, Greencross, will continue to expand its retail and vet networks as its seeks to boost its market share in the fast growing sector.
Greencross is targeting a 20 per cent share of the market, up from its current share of 7.5 per cent.
It currently has 156 Petbarn and City Farmers stores across Australia, 26 Animates stores in New Zealand, and 116 vet practices.
In the current financial year it expects to open at least 15 new pet stores, in addition to the 42 City Farmers pet stores it bought in July.
So far this year, Greencross has opened five new stores.
The company also intends to buy more vet practices to generate an additional $15 million to $20 million in annual revenue.
Greencross has bought five vet practices so far in 2014/15, generating $4.1 million in annualised revenue.
Greencross made a net loss of $128 million in the year to June 30, down from a $7.8 million profit in the prior year, due to a $130 million impairment charge on goodwill arising from its merger with the owner of Petbarn and Animates.
Pro forma net profit, which excludes the goodwill writedown, rose 45 per cent to $21.6 million.
The company said it is finalising the terms of a customer loyalty program covering its vet services and all of its retailers.
Shares in Greencross have been halted from trade ahead of an announcement of a sale of 16.6 per cent of Greencross shares to institutional investors by investment firm TPG Star.
They last traded at $10.00.