Greencross Provides Trading Update

Greencross announced  that it now expects to deliver underlying FY2018 EBITDA of between $97 million and $100 million.

In addition, following an operational review, the Company now expects to recognise between $16 million and $20 million of primarily non-cash impairments which will be reflected in the FY2018 full year statutory result.

Greencross’ new Chief Executive Officer, Mr Simon Hickey, has announced an immediate review of the Company’s operating cost base with targeted reductions of between $10 million and $13 million in annual operating expenses. This review is expected to be completed and implemented by 1 July 2018. Savings are anticipated to come from back office efficiencies, rebalancing of rosters to provide better customer experience during evening and weekend trading, utility cost efficiencies from new technology and tightening of professional fee discounting policies in the vet business. There will also be a substantial reduction in project costs including consultants as the business enters FY2019. Part of these cost savings will be reinvested into customer facing technology and data analytics to improve customer engagement and in-store experience, enhance subscription capability and better leverage the 1.8 million active members in Greencross loyalty programs.


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