Grey Wolf Animal Health Corp. (WOLF.TSXV) has announced the financial results from the quarter and six months that ended on June 30, 2023. The highlights of these results included that the company's revenue increased by 8.8% to CA$6.7 million since last year, and revenue increased by 12.6% to CA$12.7 million for the first half of 2023.
Other highlights include that the company's gross profits increased by 5.5% to CA$3.4 million for Q2 of 2023 and increased again by 12.9% to CA$6.5 million for the first half of 2023. The adjusted before-tax earnings was CA$1 million for the quarter compared to CA$1.1 million for the same period in 2022 and CA$2.0 million for the first half of the year. This is a significant increase from last year, which saw CA$2.0 million for the entire year.
According to Angela Cechetto, CEO of Grey Wolf, "The second quarter of 2022 was a continuation of what we experienced in the first quarter. We saw revenue grow by 8.8% to CA$6.7 million, driven by organic growth within our product portfolio as well as new products launched in 2022. Gross margins have remained consistent with previous quarters due to the product mix sold in our Animal Health and Pharmacy businesses during the first six months of 2023. In addition, even as we absorb the additional costs associated with operating a public entity, our Adjusted EBITDA1 has remained steady."
Trending Up
The animal health industry in the United States was valued at US$11.92 billion in 2022 and is expected to grow by 8.7% before 2030. Pet supplies are also a relatively recession-proof market due to the humanization of pets and their integration into family units, as evidenced by growing markets like pet insurance.
As vet offices have been able to return to normal after the pandemic, and as digital services have increased, demand has started to trend upwards.
A Company With Big Achievements
Grey Wolf has a history of launching successful products, including Hide and Treat, a product meant to make administering medication to pets at home more convenient, in 2019. The company was also listed as TSXV:WOLF earlier this year. Grey Wolf reports that it has been cash flow positive since 2021.
Technical Analyst Clive Maund said of the company that it is "worth taking a quick look at Grey Wolf Animal Health Corp here as it looks like a low-risk play at this juncture as its stock appears to be just starting higher out of a base pattern as the company's business and earnings grow."
Grey Wolf recently launched a couple of new pharmaceutical drugs in the Canadian veterinary market.
According to the company, "SEDAJECT (dexmedetomidine hydrochloride injection, 0.5mg/ml) is a sedative and an analgesic intended for dogs and cats to facilitate clinical examinations, clinical procedures, minor surgical operations, and minor dental operations."
The company also notes that "ATAJECT (atipamezole hydrochloride injection, 5.0mg/ml) is intended to reverse the clinical effects of SEDAJECT in cats and dogs."
Technical Analyst Clive Maund said of the company that it is "worth taking a quick look at Grey Wolf Animal Health Corp here as it looks like a low-risk play at this juncture as its stock appears to be just starting higher out of a base pattern as the company's business and earnings grow."
Streetwise Ownership Overview*Maund rated Grey Wolf as a Speculative Buy and not unduly speculative at this juncture. The company's stock broke out from a double-bottom base pattern in June following a bear market. Following the breakout, the price retreated and started higher again in August.
Ownership and Share Structure
According to Reuters, management and insiders own 14.02% of the company.
Ian Sandler owns 10.03% with 3.11 million shares, Shawn Douglas Aspden owns 2.92% with 0.91 million shares, Robert Paul Harris owns 0.75% with 0.23 million shares, and Jill Terilee Angevine owns 0.32% with 0.10 million shares.
As for institutions, Bloom Burton & Co. Inc. owns 11.63% with 3.61 million shares.
There are 31.03 million shares outstanding and 26.68 million free-float traded shares. The company has a market cap of CA$17.14 million. It trades in the 52-week period between CA$0.68 and CA$1.40.
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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Grey Wolf Animal Health Corp.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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