Revenue at Pets at Home rose in the first quarter as consumers started to spend more, which the London-listed retail company will take as a welcome sign after a severe decline in profit in the last full financial year.
Total revenue at the animal care retailer rose by one per cent to £441.1m in the 16 weeks to July 18, with like-for-like revenue up by 0.5 per cent.
Consumer revenue grew by 1.5 per cent to £576.6m, supported by “supported by growing average customer spend and growth in active Pets Club members”, the company said. Additionally, retail revenue declined by 0.8 per cent, with like-for-like sales down 0.8 per cent.
The company has opened two new pet care centres and completed five refits in the year to date.
It’s good news for the company after a tough year: the group’s financial results for the full year 2023/2024 revealed a 13.7 per cent decline in profit before tax to £105.7m, with the group blaming its office consolidation for the dip.
“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,” an analyst at Panmure Liberum, Wayne Brown, said.
Lyssa McGowan, Chief Executive Officer, said: “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.”
Revenue in the veterinary arm of Pets at Home grew by 17.1 per cent, driven by “higher average spend and growth in visits, supported by improved clinical capacity and continued strong new customer sign-ups”.
Pets at Home has around 400 surgeries across the UK.
The CMA began an investigation in May into transparency, competition and profits within the veterinary sector following concerns pet owners are not getting value for money. It will also look at the regulatory framework of the market.
Pets at Home has previously said it is “not threatened” by the probe and would “fully cooperate” with the CMA.
Pets at Home kept its guidance for the financial year 2024/2025 unchanged, however, the company is “progressing” its £25m share buyback programme.
The programme will be undertaken in two phases, the first of which began yesterday and ends before September 27, 2024, and follows £100m in completed buybacks over the last two years.