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Veterinary services provider CVS said it expected first-half earnings to be 'materially above' last year's after sales rose 15%, led by performance in its core practice division.
CVS said it expected to report first-half 2020 adjusted earnings (EBITDA) 'materially above' that delivered in the first half of last year.
'This is in line with management expectations and is attributed to the better performance in the first half of 2020 as well as the weaker comparative in the first half of 2019,' it added.
In the first half of 2020, sales increased by 15.0% and like-for-like sales increased by 8.4%, with the company's core practice division growing sales by 13.7% and like-for-like sales by 7.4%.
Gross margins slipped to 76.0% from 76.2% in the first half of 2019.
'This slight reduction primarily results from strong sales growth for Animed Direct, our online dispensary, for which margins are lower and which accounted for 6.3% of group sales in the first half of 2020,' the company said.
At 8:48am: (LON:CVSG) CVS Group PLC share price was -5p at 1245p