Pet Valu (TSX:PET) is a Markham-based company that is engaged in the retail and wholesale of pet foods, treats, toys, and accessories in Canada. This TSX stock has surged 43% year-over-year at the time of this writing. Its shares have jumped 8.9% in the New Year.
Investors should seek exposure to the impressive pet care industry. Grand View Research recently estimated that the global pet care market was worth US$150 billion in 2021. The market researcher projects that this market will deliver a compound annual growth rate (CAGR) of 5.1% from 2022 through to 2030.
This company is set to release its fourth quarter and full year fiscal 2022 earnings on March 7, 2023. In Q3 2022, Pet Valu achieved system-wide sales growth of 28% to $331 million. Meanwhile, revenue climbed 21% from the previous year to $244 million. Moreover, it announced adjusted EBITDA of $57.0 million – up 12% from the third quarter of fiscal 2021. Adjusted net income was reported at $30.7 million or $0.43 per diluted share which was up 11% and 10%, respectively, compared to the prior year.
On the business front, Pet Valu opened 13 new stores in Q3. It ended the quarter with 729 total stores across the network. Meanwhile, it launched its AutoShip subscription service back in September 2022.
Pet Valu is on track to deliver strong earnings growth in the quarters ahead. Moreover, it offers a quarterly dividend of $0.06 per share, which represents a modest 0.5% yield. Pet Valu is a stock I’m looking to stash for the long haul.
