There are very few industries that can claim going through recession relatively unscathed, and the pet industry is one of them. Growing steadily by approximately 5.4% every year since 2002, the industry continues the trend this year as well, being expected to reach $62.75 billion in Revenue in the U.S. by the end of the year. This figure marks a 4% increase from 2015. The trend is largely due to a general tendency to humanize our pets and treat them as members of the family, offering them the best care possible, whether it’s high-end accessories, medical services or super premium food.
Although competition is fierce, companies offering innovative or niche products are highly successful and anticipate the global growth trend to be mirrored by their own revenue this year. This is also the case of OurPet’s Company (OTCQX: OPCO), a leading provider of proprietary pet products in the United States and overseas. The company designs and manufactures a wide range of innovative, high-quality accessories and products, from toys to feeding and waste management solutions.
After a Strong showing and record results in Q1 (http://nnw.fm/SW0Tp), the company reported a slight decline in revenue for the second quarter to $5.4 million, 2.7% lower than the $5.6 million reported in Q2 2015. The decline was caused primarily by a Temporary Drop in purchase orders from various major retail customers. The drop in orders does not however signal a reduced interest in the company’s offering. On the contrary, it was due to a major retailer clearing out its existing inventory to make room for upcoming OurPet’s products to be launched in the second half of 2016. The Q2 report also indicated that the company had a record order pipeline of $1.9 million and that, despite the temporary drop in sales, it was able to reduce inventory to a little under $7.2 million from $8 million at the beginning of the year.
The company’s CEO, Dr. Steven Tsengas, is not overly concerned about the lower revenue numbers and believes that if the inventory reduction hadn’t happened, OPCO would have shown strong growth in Q2 as well.
In addition, Dr. Tsengas is confident that the company will catch up in the second half of 2016. Based on the overall market tendencies, historical performance and the new products it will put on the market, OurPet’s anticipates a solid performance and record revenue again in Q3 and Q4, especially on the heels of its SuperZoo National trade show participation in early August. At the event, the company launched a strong showing of innovative pet products, including OurPets® Switchgrass Natural Cat Litter™ (http://nnw.fm/4LFug) – a high-end, all natural and fully biodegradable litter, and the Intelligent Pet Care™ (http://nnw.fm/Tp7gJ) BlueTooth® line of products, which monitor pet behavior via a smartphone app. OurPet’s also recently introduced a new generation of electronic cat toys.
For more information, visit the company’s website at www.ourpets.com
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