Pets at Home has reported a rise in revenue for the first quarter, a positive sign for the London-listed retail company following a significant drop in profit during the last financial year.
The pet care retailer saw a one per cent increase in total revenue to £441.1m in the 16 weeks leading up to July 18, with like-for-like revenue experiencing a slight uptick of 0.5 per cent.
Consumer revenue grew by 1.5 per cent to £576.6m, bolstered by an increase in average customer spend and growth in active Pets Club members, according to the company. However, retail revenue declined by 0.8 per cent, with like-for-like sales also down by 0.8 per cent.
So far this year, the company has opened two new pet care centres and completed five refits.
This comes as welcome news after a challenging year for the group, which saw a 13.7 per cent decline in pre-tax profit to £105.7m for the full year 2023/2024. The group attributed this dip to its office consolidation, as reported by City AM.
Wayne Brown, an analyst at Panmure Liberum, commented on the results: “Considering the weak consumer environment, we see Pets’ multiple self-help levers now kicking in and we predict this improving trend to continue for the rest of the year… Vets continues to motor ahead highlighting the strength of its differentiated model.”
Lyssa McGowan, Chief Executive Officer, expressed satisfaction with the results, stating: “We are pleased to have delivered a resilient Q1, with our growth improving through the quarter as our offer continued to resonate well with UK pet owners.”
“The benefits of our investments in logistics, stores and digital are coming through, and our unique joint venture vets continued to deliver differentiated performance, growing visits and attracting new customers, driven by our passionate, independent practice owners.”
Pets at Home reported a 17.1 per cent increase in revenue within its veterinary division, attributing the growth to “higher average spend and growth in visits, supported by improved clinical capacity and continued strong new customer sign-ups.”
The company operates approximately 400 veterinary surgeries throughout the UK.
Following concerns that pet owners may not be receiving value for money, the CMA initiated an investigation in May into the transparency, competition, and profitability of the veterinary sector. The probe will also examine the market’s regulatory framework.
Pets at Home has expressed confidence regarding the CMA investigation, stating it is “not threatened” by it and confirming its intention to “fully cooperate.”
Despite the ongoing investigation, Pets at Home has maintained its financial guidance for FY 2024/2025. Additionally, the company is advancing with its £25 million share buyback initiative.
This share repurchase scheme is being executed in two stages, with the first phase having commenced yesterday and set to conclude before September 27, 2024. This follows the completion of £100 million in buybacks over the preceding two years.
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