Pet Valu Holdings Ltd.

quarter 2025 earnings conference call. My name is Harry and I'll be coordinating today's call. All lines have been placed on mute to prevent any background noise. Please note that following the formal remarks there will be a question and answer session. If you would like to ask a question at that time please press star 1 on your telephone keypad. If you're using a speakerphone please lift the handset before pressing any keys. We kindly request that you limit your time to one question plus one follow-up before cycling back into the queue so that we allow time for as many of you to ask a question as possible. I would now like to turn the ball over to James Allison, Investor Relations at PetValue. Please go ahead, Mr. Allison.

Good morning and thank you for joining PetValue's call to discuss our third quarter 2025 results, which were released earlier this morning and can be found on our website at investors.petvalue.com. With me on the call is Greg Ramier, Chief Executive Officer, and Linda Drysdale, Chief Financial Officer. Before we begin, I would like to remind you that management may make forward-looking statements. which includes guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties, which could cause actual results to differ materially from those expressed today. For a broader description of risks related to our business, please see our Q3 2025 MD&A, 2024 Annual Information Form, and other filings available on CEDAR+. Today's remarks will also be accompanied by an earnings presentation. which can be viewed through our live webcast and is also available on our website. Now, I'd like to turn the call over to Greg.

Thank you, James, and good morning, everyone. I'll start by reviewing some of our key highlights from the quarter before handing it over to Linda to discuss our financials and the update to our outlook for 2025. Before I begin, I'd like to express how excited I am to step into the role of CEO. Hard to believe it's been a year since I joined Pet Value, but in that time, I've seen countless examples firsthand of why millions of devoted pet lovers turn to us for their pet's needs. From how deeply our aces and franchisees care about providing the best in-isle expertise, to the scale and quality of our store network, digital channel, and supply chain, to the breadth and innovation of our proprietary brand assortment, we truly are unmatched in Canadian pets. I'm thrilled to have the opportunity to help lead pet value through this next chapter of growth and to add to our legacy of serving Canadians devoted pet lovers. Now moving to the results. Our business delivered another quarter of growth and healthy margins in Q3 as we continue to navigate an uneven discretionary demand environment. With our growth once again outpacing the market, it's clear devoted pet lovers are increasingly drawn to our unique combination of strength in convenience, value, quality, and expertise, which together creates our compelling retail experience on matched and Canadian pet. System-wide sales increased 4%, supported by continued momentum on a same store basis, as well as our strategic expansion in our industry-leading store network. This translated into 5% revenue growth, including contribution from higher wholesale penetration. We achieved these outcomes through responsible and balanced investments in everyday value across our assortment and new product introductions. And we supplemented these investments with events to drive excitement to invigorate discretionary demand. At the same time, our teams continue to find opportunities to realize operating expense savings to offset inflation. As a result, adjusted EBITDA margins improved sequentially to 22%. The resilience and consistency of our performance speaks to the success of our commercial playbook and long-term strategies working in tandem. Let me unpack a few of the highlights from the quarter. We took several actions in Q3 to help solidify our position as Canada's local and everywhere pet specialty retailer. We and our franchisees opened 16 new stores in the quarter, bringing us to 849 locations coast to coast. With 26 stores open year to date, we are well along our way of reaching 40 new stores by year end. At the same time, we and our franchisees renovated, expanded, or relocated another 72 locations, Almost all of which related to our enhanced culinary experience, which I'll touch on shortly. Our digital channel continues to scale with all elements, our transactional website, auto ship and marketplace contributing to its success. In the quarter, we featured a limited time auto ship offer providing 20% off first orders of key made in Canada brands, including our Performatron family of products. generating strong uptake and helping drive our continued growth in active subscriptions with devoted pet lovers. We are also seeing great ramp up in our marketplace offering, which complements our other channels. Following a successful first year with Instacart, we plan to add more options for devoted pet lovers in Q4 to further elevate our industry-leading omnichannel offering and convenience. At the same time, We continue to leverage our strengths to deliver the best pet customer experience. Devota pet lovers are taking note of the everyday value we deliver, with strong response to the investments we made in our Fresh for Life litter last fall, and in particular to our Performance and Prime investment this spring, with both programs exceeding expectations in volumes and sales. On the back of this success, we bolstered our everyday value proposition across hundreds of additional items in the latter part of Q3 and early Q4 with our lowered and locked program, including investments at both retail as well as wholesale, so our franchisees can participate alongside us. While it's still early, these actions strengthen our position to continue to win the monthly shop. We complemented our everyday value with a smart and exciting promotional program powered by our new pricing and promotions tool. Celebrating events like our anniversary sale and the limited time 20% off auto ship discount. We also broaden the portfolio of brands eligible under our frequent buyer loyalty program, including the exciting addition of Purina ProPlan in early Q4. Equally important are our investments in innovation and quality. In the quarter, we introduced approximately 150 SKUs of national branded toys, collars and leashes, better aligning our hard lines offering with what devoted pet lovers are looking for. We also continue to innovate with our proprietary brands. This included new product introductions such as plant based dog kibble and freeze dried cat treats under our Performatron Ultra brand. Fresh for Life corn litter, and opening price point travel carriers and accessories under our essentials brand. And finally, our enhanced culinary experience. With 70 stores completed in the quarter, including a handful of initial franchise locations, we're pleased with the pace of implementation. While still very early in its deployment, initial data reaffirms a strong lifetime value of culinary customers who visit and spend more than twice that of a traditional customer. We remain on pace to bring this enhanced experience to roughly 120 corporate stores by the end of the year. Now moving to our third focus to fortify strong retail and wholesale fundamentals. As previously shared, we concluded our supply chain transformation in Q3 with the commissioning of our new Calgary DC in July and the exit of our legacy facility and third party storage space in that market by the end of September. With over 1.3 million square feet of modern, partially automated distribution capacity in Canada, we have successfully built Canada's strongest supply chain, supporting the pet specialty industry and one that will support our growth over the next decade plus. For those of you who've been with us on this journey over the last several years, you know we haven't had to wait for this moment to realize the compelling benefits this transformation brings. For the past two years, these new facilities have enabled efficient new store growth, unlocked our ability to capture higher wholesale penetration with our franchisees, and supported inventory leverage. In the third quarter, we reached another important inflection point, delivering year-over-year leverage in our consolidated distribution costs as we began to lap the step-up in fixed costs associated with these new DCs. We believe this is a strong signal for the opportunities ahead to drive profitability and reinvestment as we grow into our upsize capacity. All of these achievements, network expansion, merchandising excellence, transformation of our supply chain, would not have been possible without the talent and commitment of our aces, our franchisees, and leaders across the organization. We are a business built around nurturing the love pet parents share with their pets. And this is only made possible by nurturing and supporting our people and franchisees. We are humbled to have recently been recognized for our efforts, including receiving the 2025 Hall of Fame Award from the Canadian Franchise Association for our leadership and contributions to the Canadian franchising industry. And being named a 2025 Employer of Choice by Canadian HR Reporter. By forming strong relationships and providing safe and rewarding working environments, we help drive stability and tenure with our franchisees and ACEs, which benefits everyone, including our devoted pet lovers. To learn more about how we accomplished this, please see our 2024 ESG report, which was released this morning alongside our Q3 results. With that, I'll pass it over to Linda to review our financials and 2025 outlook. Linda?