Pets at Home posts lower full year profit
Pets at Home has seen its full year revenue grow by 5.2% to £1.5 billion but has posted lower profit after trading was impacted by a transition to a new distribution centre and customers spending less on pet accessories.
In the 52 weeks to 28 March, retail revenue increased by 4% and by 4.1% on a like-for-like basis which was in line with expectations. Vet revenue rose by 16.8% as record sales were supported by a higher average transaction value.
However, the retailer’s underlying pre-tax profit fell by 3.2% to £132 million as guided after trading was impacted by a weaker performance in its discretionary accessories category and short-term availability issues as it transitioned to a new distribution centre.
Meanwhile, statutory pre-tax was down 13.7% to £105.7 million reflecting the decline in underlying pre-tax and non-underlying costs of £26.3 million, which the retailer attributed to the move to bringing the new distribution centre onstream and a support office consolidation.
Lyssa McGowan, chief executive officer at Pets at Home, said: “FY24 has been a pivotal year for the business, having delivered some key building blocks of our platform for long term growth.
“I am proud of the progress we have made in the year; we relaunched our brand, opened our new DC, built our new digital platform, made progress in our sustainability agenda, and enhanced our physical estate.
“The business has come together brilliantly to navigate any challenges faced this year, and we have delivered some key milestones of our strategy.”
During the year, Pets at Home launched a new digital platform that aims to offer everything owners need to care for their pet. It also opened three new vet practices and extended 26 sites.
Pets at Home said it has seen low double growth in its vet practices in the first six weeks of the new financial year and a decline of 2% in retail, which was broadly in line with plan.
The retailer is maintaining its current FY25 underlying pre-tax profit guidance despite a “subdued” external trading environment
McGowan said: “Our medium-term strategy and financial framework is unchanged and, looking ahead, the fundamental strengths of the business position us well to deliver growth.
“We hold a leading position in a structurally growing market, with an unrivalled retail store network, and a unique, differentiated and integrated vet business.
“Above all else, we have the best colleagues in the industry, who use their passion and expertise to guide customers through their pet care journey every day. All of this positions us incredibly well as we continue to execute our strategy to build the world’s best pet care platform.”
