Pets at Home stated today that it had made a “resilient” start to the year after posting a 1% rise in first-quarter revenue to £441.1m, with like-for-like growth of 0.5%.
Over the 16 weeks to 18 July, revenue in its veterinary business jumped 17.1% and by 13.3% on a like-for-like basis. The uplift was driven by higher average spend and growth in visits.
However, its core retail operation saw revenue and like-for-like sales slip 0.8% amid a subdued consumer environment. Pets at Home noted that it had stronger performance through the second half of the quarter, driven by market share gains in key categories.
Chief Executive Lyssa McGowan 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.”
Pets at Home noted that it was continuing to see growth in subscriptions, which now account for 11% of consumer revenue as the retail business begins to benefit from the improved functionality offered by its new digital platform.
Looking ahead, the company maintained its full-year guidance for underlying pre-tax profit to come in at £144m.
Wayne Brown, an analyst at Panmure Liberum, commented: “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 continue to motor ahead, highlighting the strength of its differentiated model.”
NAM Implications:
- For the right brands, Pets at Home provides a unique route to the consumer…
- …especially if your portfolio spans Retail and Vets.
- Worth developing and staying with them…
