Pets at Home has reported that its profit has fallen in line with expectations, according to its latest performance update.
However, the company has also warned of potential challenges ahead, as reported by City AM.
The group anticipates a pre-tax profit of £133m for the year, which aligns with previous forecasts.
Despite a “challenging and volatile UK consumer backdrop”, the company stated that trends in the final quarter of the year developed as expected across both its Retail and Vets divisions.
The firm highlighted record numbers of Pets Club members and continued growth in its Vets business.
It expects to conclude the full 2025 financial year in a net cash position, having returned approximately £85m to investors throughout the year.
Over the past year, Pets at Home has completed its new digital platform and network optimisation. With the introduction of this new platform, the company now has two “major strategic programmes” aimed at facilitating business growth in the coming year.
Looking ahead, the group expects current market conditions and consumer backdrop to persist into the new financial year. However, it predicts further profit growth following the “exceptional levels” achieved in the past two financial years.
In its Retail division, the group expects to outperform the market as its investments in digital start to pay off. Nevertheless, the company anticipates an £18m hit due to increased employers’ national insurance contributions.
The firm has forecasted a dip in profit for the 2026 financial year to an estimated £115m to £125m, due to rising expenses.
Shore Capital analyst David Hughes remarked: “The continued decline in the Retail arm is likely a cause for concern for investors, however the ongoing growth in the higher margin Vet business is encouraging and if the business does gain market share, it does have the potential to emerge stronger as and when the consumer does recover.”
Pets at Home is set to release its comprehensive annual report for the 2025 financial year on May 28, in what is a much-anticipated update.
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