Pet Valu Raises Dividend on Back of 2023 Business Outlook

Pet Valu Holdings Ltd., a Canadian pet retailer, announced Tuesday that it increased its quarterly dividend to 67% due to its improved industry expectations and business.

Pet Valu stated that it anticipates revenues of between 1.05 billion Canadian Dollars (US$771.3million) and C$1.08 trillion in 2023. Revenue rose almost 23% to C$951.7million in 2022, compared to the previous year.

The company expects that the gross profit margin for the year ahead will be slightly lower than its historical range between 35%-36%. This is mainly due to unfavorable foreign exchange rates and higher costs associated to revamping its supply chain. These are expected to amount to C$13million.

Adjusted earnings per share this year are expected to be in the range of between C$1.60 and C$1.66 a share, above the C$1.59 a share it generated in 2022.

Based on its 2023 outlook, Pet Valu said it has increased its quarterly dividend to C$0.10 a share, payable on April 17 to shareholders of record as of March 31.

"Given our conviction in our outlook and our strong liquidity position, we are excited to announce a 67% increase to our quarterly dividend," President and Chief Executive Richard Maltsbarger said.