March 8, 2022
Petco Health + Wellness Company Reports Record Year of Revenue and Profitability Issues 2022 Guidance
Petco Health and Wellness Company, Inc., a complete partner in pet health and wellness, today released its financial results for fourth quarter and fiscal year 2021 ended Jan. 29, 2022.
In the fourth quarter of 2021, Petco delivered net revenue of $1.5 billion, up 13 percent versus prior year. Net income improved by $35.2 million from prior year to $29.0 million or $0.11 per share. Adjusted Net Income1 for the fourth quarter increased $38.2 million to $75.1 million or $0.28 per share, up $0.11 or 65 percent3 from prior year, while Adjusted EBITDA1 increased by $23.6 million or 16 percent2 from prior year to $172.2 million.
Net revenue for full year 2021 increased 18 percent or $886.9 million to $5.8 billion. Net income improved by $190.9 million from prior year to $164.4 million or $0.62 per share. Adjusted Net Income1 for the year increased $183.0 million from prior year to $241.1 million or $0.91 per share, while Adjusted EBITDA1 increased by $107.1 million or 22 percent2 from prior year to $591.5 million.
“Our results for the quarter and full year demonstrate that our focus on long-term, sustainable growth, powered by continued delivery against our strategic growth opportunities, is working,” said Ron Coughlin, Chairman and CEO of Petco. “We enter this fiscal year as a stronger company than ever. Our category remains strong and resilient; our competitive moats are deepening, and our world-class team is executing to deliver purpose driven performance. With an integrated omnichannel infrastructure, robust services offering including 197 veterinary hospitals and millions of net new customers, we’re well positioned to drive enhanced long-term shareholder value.”
Additionally, total debt remained roughly flat throughout 2021 at $1.7 billion with Net Debt1 improving $72.9 million to $1.5 billion driven by net cash flow from operations of $358.2 million and Free Cash Flow1 of $119.1 million, up 33 percent and 9 percent, respectively, from fiscal year 2020. Throughout 2021, Net Debt1 / Trailing Twelve Month Adjusted EBITDA1 decreased 22 percent or 0.7x to 2.5x driven by Free Cash Flow1 generation and growth in Adjusted EBITDA1.
Fiscal Q4 2021 Highlights:
Comparisons are fourth quarter of 2021 ended Jan. 29, 2022, versus fourth quarter of 2020 ended Jan. 30, 2021, unless otherwise noted
- Net revenue increased 13 percent to $1.5 billion driven by comparable sales growth of 14 percent
- Net income increased $35.2 million to $29.0 million or $0.11 per share
- Adjusted Net Income1 increased $38.2 million to $75.1 million or $0.28 per share
- Adjusted EBITDA1 increased $23.6 million to $172.2 million
Fiscal Year 2021 Highlights:
Comparisons are fiscal year of 2021 ended Jan. 29, 2022, versus fiscal year of 2020 ended Jan. 30, 2021, unless otherwise noted
- Net sales increased 18 percent to $5.8 billion driven by comparable sales growth of 19 percent
- Net income increased $190.9 million to $164.4 million or $0.62 per share
- Adjusted Net Income1 increased $183.0 million to $241.1 million or $0.91 per share
- Adjusted EBITDA1 increased $107.1 million to $591.5 million
- Net cash provided by operating activities increased $89.6 million to $358.2 million
- Free Cash Flow1 increased $10.1 million to $119.1 million
- Total Debt increased $27.3 million to $1.7 billion
- Net Debt1 decreased $72.9 million to $1.5 billion
- Net Debt1 / Adjusted EBITDA1 improved by 0.7, to 2.5x
- Ended 2021 with 1,433 Pet Care Centers in the U.S. and Puerto Rico, 197 Full-Service Vet Hospitals within Pet Care Centers and 108 Pet Care Centers in Mexico
For more information, visit the company’s official press release.