Pet Valu Holdings Ltd.
Looking for a new vet: Pet Valu announces CFO to accept a new opportunity
TSX: PET | CAD 39.90 | Outperform | Price Target CAD 46.00
Sentiment: Neutral
News: PET announced CFO Jim Grady has resigned effective January 20, 2023, to pursue a leadership role in a private US-based
company. We do not believe the change signals anything untoward at PET.
• Neutral to the share price: We are disappointed to see Jim go as investors greatly appreciated his role and transparency during and post-IPO, but we understand the decision was made for personal reasons, and will enable Mr. Grady to remain closer to home and family. As such, the news should not impact PET's share value.
• Interim CFO highlights bench strength: Stepping into the CFO role on an interim basis while the company conducts a search is Tammy Nunez, Pet Valu Vice President, Financial Planning & Analysis. Ms. Nunez has spent 20+ years in retail and consumer goods, and previously worked in a variety of roles at Canadian Tire for nine years before joining Pet Valu three years ago.
• Expect PET to attract high quality candidates for the CFO role: We would expect the role of CFO at PET to attract a high level of interest given the company's stable, high return, high CF generative business model and long-tail growth outlook.
• Strong hands on the leash: Under strong leadership of CEO Richard Maltsbarger we do not expect changes in strategy/execution of Pet Valu’s growth strategy, nor do we believe Mr. Grady's departure indicates anything untoward at Pet Valu. We wish Mr. Grady the very best in what has all the hallmarks of an excellent opportunity, both professionally and for family considerations.