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Greencross shares have shed 20 per cent of their value after the veterinary chain and pet shop owner downgraded its full-year earnings forecast.

Greencross expects underlying earnings before interest, tax, depreciation, and amortisation of between $97 million and $100 million due to between $16 million and $20 million of impairments.

That compares to February’s earnings guidance of $108 million.

Greencross shares fell sharply on the downgrade and were $1.05, or 20 per cent, lower at $4.31 at 1250 AEST on Wednesday.

The company said its veterinary division was behind the weaker outlook after it failed to deliver an expected second-half improvement due to disappointing visitor numbers in both standalone and in-store clinics.

Greencross chief executive Simon Hickey announced an immediate review with the aim of slashing between $10 million and $13 million from annual operating expenses.

The review is expected to be completed by July 1.

‘Given structural changes in the pet sector, we need to review our previous capital-intensive model of renewing the physical layout of stores and clinics,’ Mr Hickey said in a statement to the ASX.