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Pet-loving cross-shoppers boost Greencross

Trevor Chappell  |  21 Feb 2018Text size  Decrease  Increase  |  
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MELBOURNE - [AAP] Pets and vets specialist Greencross (ASX: GXL) is benefiting from a surge in sales as pet owners lavish increasing sums on their animals and spread their spending across new services and online channels.

Greencross lifted first-half profit by 8.9 per cent to $23.2 million after strong performances from its shops, in-store veterinary clinics and emergency hospitals, with earnings bolstered by a jump in digital revenue.

Australian online sales soared by 92 per cent to $9 million, accounting for 3.4 per cent of Australian retail sales.

Greencross chief executive Martin Nicholas said the company was benefiting from the rise of "cross-shoppers" who use online and bricks-and-mortar stores.

More than 80 per cent of online customers also visited a retail store or clinic, Greencross said.

The veterinary care and pet supplies provider says while a customer making an average of five transactions a year in physical stores spends $265, a customer who makes 25 transactions across retail stores, the vet, grooming facilities and online spends on average $1,874 per annum.

Greencross, which operates the Petbarn and City Farmers retail outlets in Australia, says the number of its customers who shop at more than one platform has risen by 34 per cent to more than 212,000 customers over the past year.

"These cross-shoppers now represent 13 per cent of Greencross's active customer base and account for 28 per cent of total revenue and 32 per cent of gross margin," Greencross said on Tuesday.

"Excellent trading over the Christmas period, higher premium food sales and growth in online were all key contributors to a good retail results," Mr Nicholas said.

Australian retail sales were up by six per cent to $263 million.

Greencross's Australian veterinary operations lifted revenue by 14 per cent to $119 million as the company increased the number of veterinary clinics located within retail stores and expanded the number of specialist and emergency hospitals.

Shares in Greencross were 19 cents, or 3.1 per cent, lower at $5.96 at 1536 AEDT.

MORE "CROSS SHOPPERS" HELP BOOST GREENCROSS FIRST HALF

* First-half profit up 8.9pc to $23.2m

* Revenue up 8.8pc to $433.3m

* Interim dividend up 0.5 cents to 10 cents, fully franked 

 

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© 2020 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

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