Coming off of another quarter of record-breaking financials,
with Q1 FY16 net revenues and net income up 10.3 and 24.7 percent respectively
YOY, OurPet’s Company (OTCQX: OPCO) chairman and CEO Dr. Steven Tsengas
recently told Austin, Texas-based IR/PR/SMR firm DreamTeamNetwork in an audio
interview (http://dtn.fm/5z69S), that he thinks 2016 international sales could
be one the biggest positive surprises from the company moving forward. This
just after an extremely strong showing of the company’s new OurPets®
Intelligent Pet Care™ line of smart products at the industry’s premier event,
the Global Pet Expo, which is presented every year by the American Pet Products
Association (APPA) and Pet Industry Distributors Association (PIDA).
Tsengas tipped his hand about international market traction
horizons to DreamTeamNetwork in the aforementioned interview, explaining that
the company’s OurPets and the PetZone brands were already seeing very strong
floor play in China, Japan and South Korea, where the company has localized its
initial efforts, and built up a tight rapport with consumers. With around 11
million dogs and 10 million cats (Japan Pet Food Association), Japan is a
market that is noted for appreciating good design and should be prime
development territory for OPCO, which should have no trouble adding to its
position here. The same is true over in South Korea, where a similar cultural
taste for ingenious design predominates, and where the pet population is on
track to hit one million for the first time this year (http://dtn.fm/v0Vew).
The global pet market is a nice, stable growth environment
for an innovator like OPCO, which is growing its retail footprint/consumer
exposure via both its pet parent/prosumer OurPets brand and its mass market
brand, PetZone. The latest Packaged Facts report that looks closely at the
bullish scenario developing in the sector, with increasing interest by private
equity and other M&A activity on the rise, lays out the case pretty well as
to how there is plenty of room for growth. The continued strength of operators
such as the country’s biggest rural lifestyle retailer, Tractor Supply Company
(NASDAQ: TSCO), with its 1,500-plus stores and third consecutive year hosting
Nestle’s (OTC: NSRGY) Purina Days last month, offers clear indication to the
investment community about the true bedrock potential, and upper-limit scope of
this market.
Underlying market dynamics like those driving the rise of
TSCO have made other retailers and sector majors, such as Petco and PetSmart,
hot properties for investors who are looking to cash in on people’s growing
obsession with their pets. These same dynamics should also help propel
lower-hanging investment fruit in the midcap range on down to new-found
securities stardom. The market for pet products and services is currently on
track to hit upwards of $91 billion in annual sales by 2019
(http://dtn.fm/vJ2I5), and you can bet your bottom dollar that the smart money
out there is hard at work injecting further consolidative forces into this
seemingly recession-proof consumer market.
OurPet’s Company is a great hidden gem type valuation story
amid all this, and the company also has the IP/visionary design capability to
surf the momentum with style, capitalizing on sector buzz in order to bring its
exceptional product designs to light before the eyes of eager, pet-loving
consumers. In the U.S. alone we have around 163 million or more cats and dogs,
and the tendency to treat these pets like fully-fledged members of the family
is steadily on the rise. This is a trend that OPCO is poised perfectly to
benefit from with their OurPets brand of premium offerings like gorgeous,
heavy-duty stainless steel feeding bowls that have a proprietary, patented,
permanently-molded rubber ring on the bottom that prevents sliding and noise
when the animal eats. Similarly elegant looking, yet robust and functional
designs, each of them engineered with careful consideration of the animal’s
needs, as well as the owner’s décor, have come to typify the OurPets brand in
the minds of high-end and not-so-high-end consumers alike.
This dual brand approach by OPCO is ideal for courting the
more lucrative high-end pet parent prosumer, and, as more people gravitate into
this fold, OPCO will continue to shine more and more brightly as a design shop
through the OurPets brand. The tendency for people to treat their pets like
bonafide family members is on the rise globally as per capita incomes rise,
and, in part, this may be due to the phenomenon of people who (as a country
becomes more affluent) typically wait longer to have their first child, in
which case the pet fills an emotional void.
For more information, visit the company’s website at
www.ourpets.com
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