Greencross Announces 14.5% Sales Growth in Trading Update at Macquarie Australia Conference
Greencross states that it has significant growth runway, as it currently occupies less than 10% market share of the estimated $9 billion market across the ANZ region.
Greencross Limited (ASX:GXL) released a presentation elucidating its strategies and operations and provided a trading update at the Macquarie Australia Conference on Wednesday evening.
Group total sales grew 14.5% since the previous fiscal year, along with group like-for-like (LFL) sales growth of 5.1%. The company’s online sales grew 78% and cash flow generation remained strong.
Greencross aims to add 21 stores and 14 “in store” co-located vet clinics in the current financial year. The company anticipates the roll out of 30 “in store” clinics by the end of FY17.
During FY16, the company added 21 retail stores, 9 standalone vet clinics and 14 “in store” clinics.
Greencross has established itself as the market leader in the ANZ veterinary industry, offering a ‘one stop shop’ experience with pet-care products, veterinary care, grooming, DIY dog wash and other speciality medical services.
The company’s loyalty program has achieved a growing base of active members, representing the majority of its transactions and sales. Moreover, the loyalty program has enabled the company to drive greater levels of engagement and value and provides direct access to the Australian pet owning families.
Greencross states that it has significant growth runway, as it currently occupies less than 10% market share of the estimated $9 billion market across the ANZ region. The company also aims to become the number one online pet services provider.
The roll-out of “in store” clinics is now being expedited after the company established that this store format presents more attractive economics than standalone vet acquisitions.
Greencross has modified its supply chain processes as it engages in direct supply arrangements with all major suppliers and has exited wholesale food supply arrangements.
Author: Kaivalya Kandarpa
May 05, 2016
Kaivalya is an equity analyst and a client advisor at Wise-owl. She specialises in fundamental and technical analysis for large and mid-cap companies. Having completed her bachelor's degree in Business Administration majoring in Finance, Kaivalya has a comprehensive understanding of international stock market movements. She tracks local and overseas markets and compiles analytical reports for various industries.