Pet Valu Reports Second Quarter 2025 Results

Executive Summary

• Pet Valu Holdings Ltd. reported second-quarter fiscal 2025 financial results, highlighting a 2.6% increase in same-store sales and 5.8% revenue growth compared to Q2 2024.
• The company announced a CEO succession plan, with current President and COO Greg Ramier succeeding Richard Maltsbarger as CEO effective September 21, 2025, while Maltsbarger transitions to Senior Advisor until his retirement in April 2026.
• Pet Valu raised its full-year 2025 outlook, projecting revenue between $1.18 and $1.21 billion and Adjusted EBITDA between $257 and $262 million, driven by store expansion and supply chain improvements.

Key Details

• Q2 2025 Financial Performance:
  • System-wide sales reached $369.9 million (up 4.6% YoY).
  • Revenue was $280.6 million (up 5.8% YoY).
  • Same-store sales growth was 2.6%, driven by a 1.8% increase in average spend per transaction and a 0.8% increase in transaction volume.
  • Adjusted EBITDA was $60.2 million (up 4.2% YoY), representing 21.4% of revenue.
  • Net income was $21.8 million (up from $17.8 million in Q2 2024).
  • Adjusted Net Income was $26.2 million ($0.38 per diluted share), compared to $25.9 million ($0.36 per diluted share) in Q2 2024.
  • Gross profit margin was 33.4% (33.6% excluding transformation costs).
  • SG&A expenses were $56.9 million (20.3% of revenue).
  • Net interest expense decreased to $7.4 million (down 14.1% YoY).
  • Effective income tax rate was 27.1%.
• Operational Metrics & Cash Flow:
  • Opened 3 new stores, bringing the total network to 833 stores.
  • Repurchased 2.3 million common shares for $65.5 million.
  • Free cash flow was $27.1 million (up from $7.7 million in Q2 2024).
  • Net capital expenditures were $11.9 million.
  • Cash on hand totaled $11.4 million.
  • Inventory at quarter-end was $140.6 million.
• 2025 Full-Year Outlook:
  • Revenue expected between $1.18 and $1.21 billion.
  • Adjusted EBITDA expected between $257 and $262 million.
  • Adjusted Net Income per Diluted Share expected between $1.63 and $1.68.
  • Net Capital Expenditures expected at approximately $45 million.
  • Transformation costs estimated at ~$13 million pre-tax; share-based compensation at ~$13 million pre-tax.
  • Expectation of ~40 new store openings and same-store sales growth between 1% and 4%.
• CEO Succession Plan:
  • Greg Ramier (current President and COO) will become CEO effective September 21, 2025.
  • Richard Maltsbarger will remain CEO until September 21, 2025, then serve as Senior Advisor until his retirement on April 4, 2026.
  • Maltsbarger will remain on the Board of Directors until his retirement.
  • Ramier previously served over 20 years with Loblaw Companies Ltd.
• Dividends:
  • Board declared a dividend of $0.12 per common share, payable September 15, 2025, to shareholders of record as of August 29, 2025.

Notable Quotes

• Richard Maltsbarger, CEO: “Our business strengthened throughout the quarter, with same-store sales and revenue growth supported by positive same-store transaction growth, supporting raising our overall outlook for the year... We are also excited to announce we have completed our multi-year distribution centre network transformation, creating an incredibly effective, omnichannel, coast-to-coast supply chain ready to support our long-term growth goal of over 1,200 stores.”
• Tony Truesdale, Chairman: “Greg has been a driving force in the commercial momentum we have achieved over the past year, and we are excited to see him step into the CEO role.”
• Greg Ramier, Incoming CEO: “It’s a real honour to step into the CEO role and I’m excited to carry the momentum forward as we continue to grow, innovate and deliver great experiences for our devoted pet lovers, our franchisees, and our ACEs.”