Greencross (ASX:GXL)

Leyland Private Asset Management

Trusted and Confidential Asset Management Advisors

Greencross is Australasia’s leading specialist retailer of pet food, pet products and operates Australia’s largest veterinary services business. Greencross’ strategy is to continue to consolidate the fragmented pet industry aiming for 20% market share.. Industry estimates state that Australia currently spends $8.7 billion on their pets ($2.5 billion on vet services, $4.5 billion on pet products and $1.7 billion on additional services). Pet associated product sales have outperformed the broader retail market over the past 5 years by 1.5%. GXC has been aquiring 1-2 veterinarian clinics per month, targeting an aquisiton price of 4x EBIT since 2010. The cost benefits of Greencross’ acquisition strategy will become more prevalent once centralised administration, supply chain efficiencies and cross selling are focused on by management. With an additional $90million of undrawn debt, strong EBIT debt coverage of 5 times and a PEG ratio of approximatley 1 the company is well positioned for growth. The market responded badly to the the recent departure of CEO Jeffrey David and the share price looks attractive in our view. Subscribe to our newsletter here: (VIEW LINK)

1 topic

Leyland Private Asset Management
Trusted and Confidential Asset Management Advisors

Founded in 2003, Leyland Private Asset Management is an independently owned firm specialising in Australian Stock Market and Fixed Interest Investments for individuals, companies, self-managed super funds, institutions and family offices.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment