Fountain Report Excerpts March 14, 2023

Fountain Report Excerpts
  1. Patterson Companies reported third quarter net sales of $1.6 billion, up 0.3%. Reported net income attributable to Patterson for the quarter was $53.9 million, or 55 cents per diluted share, compared to $57 million, or 58 cents per diluted share, last year. Reported net sales in the animal health segment were $969.4 million, with internal sales growth of 4.6% driven by sales growth in both the companion animal and production animal segments.
  1. Prices for pet insurance are rising, with some owners paying upwards of 50% more, as a spike in demand for veterinary care fuels higher-than-expected claims, the VIN News Service reports. Trupanion expects its premiums to increase by an average of 15% in the first quarter of 2023, rising to 18% by the end of the year. The company’s president, Margi Tooth, said Trupanion expects to lose customers as a result of the price hikes. “To support the payout ratio that every insurer has, there isn’t anyone out there that wouldn’t be needing to increase their prices now,” she said. “The pricing increases seen in 2022 were unprecedented in terms of the frequency and also the severity.”
  1. Pet owners are feeling the pressure as the cost of caring for their pet goes up, Spectrum News 1 reports. Pet food prices were up 15% in January over last year, and pet product prices were up 12%, according to the Consumer Price Index. According to Michael Henricks, a veterinarian at Ohio-based Faithful Friends Vet Clinic, switching products can help owners keep costs down, as can disease prevention by maintaining a good diet.

Click HERE to subscribe to the full Fountain Report content.