Article: US veterinary clinics continue to display robust sales bounce back
US investment bank William Blair has highlighted a continued improvement in veterinary clinic sales, as the sector recovers from the consequences of COVID-19.
The firm previously suggested a V-shaped recovery is occurring in the US veterinary practice market, with the latest data adhering to this trajectory.
William Blair said information provided by VetSuccess shows a continued rebound in veterinary clinic sales at the strongest growth level since the pandemic began (excluding increases during the week of the July 4 holiday).
US vet practice sales were up by 13.4% year-on-year on during the week ended July 18, compared to the prior week's increase of 9.8%. At the beginning of the pandemic, year-on-year sales were down by about 17%.
William Blair analyst Ryan Daniels said: "In our view, this continues to support the V-shaped recovery scenario in the companion animal industry as stay-at-home orders, and other similar restrictions, are lifted across the country."
The investment bank used data from VetSuccess' Veterinary Industry Impact Tracker, which follows the performance of vet clinics across 31 US states. According to this information, vet practice revenues have been trending upward since the week ended March 28.
Mr Daniels added: "Moreover, invoices (a proxy for volumes) also experienced healthy growth, with this week coming in at slightly more than 4% growth, compared with the prior week's year-over-year change of just above 1%."
VetSuccess also suggested product-only visits to veterinary clinics appear to have been least affected by the pandemic. Mr Daniels suggested this may have been "enabled by curbside pick-ups or demand for recurring product needs such as pet medications".
William Blair also noted wellness visits increased by 21% in the week ended July 18.
This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.