A new high in customer visits have helped to boost revenue for Pets at Home by 7.3%, according to the group’s interim results statement.
Sales for the 28-week period to October 13, 2022, reached £727.2m, with group like-for-like revenue up 6.4%. Retail revenue grew by 6.8% during the period (5.9% like-for like), with omnichannel revenue growing by 16.2%.
Increased freight and energy costs, plus an increased investment in digital assets, impacted underlying pre-tax profits, which fell 9.3% to £59.2m. Despite the decline in half-year profit, Pets at Home still expects full-year pre-tax profit to be around £131m in line with the predicted level of £121m-£136m. Interim dividends of 4.5p per share, an increase of 4.7% year-on-year, are to be paid.
Sign-ups to the group’s Puppy and Kitten Club averaged 29,000 per week in Q2, more than three-fold higher than pre-pandemic levels, reports the company, while the number of active members of the VIP loyalty scheme increased 9% year-on-year to 7.6m, with those engaging across more than one channel up 10%. The number of subscription plans across the Group grew 11% year-on-year to 1.6m, generating over £135m in annualised revenue.
New client registrations across the group’s veterinary practices grew to an average of 8,800 per week, increasing the active client base to 1.7 million pet owners.
Pets at Home currently operates 457 stores, with a further five targeted to open each year, along with 5-15 new veterinary practices.
The group has refurbished 13 branches during the first half of the year, meaning that 65 centres are now aligned to the latest model, and aims to refurbish around 40 sites per year. In addition, a new purpose-built and highly automated distribution facility is scheduled to become operational by summer 2023.
Chief Executive Officer Lyssa McGowan said: “Pets at Home is well positioned to capitalise on an attractive growth opportunity in our structurally growing pet care market, supported by our unique blend of products and services, deeply embedded culture and expert, passionate colleagues, and partners.
“Our first half performance shows progress and resilience across the business. In a challenging macroenvironment, the pet care industry remains in growth across all channels, and we have continued to acquire new customers at an impressive rate, setting new records for customer numbers in recent months.
“Consumer demand remains strong, with a record number of UK pet owners continuing to prioritise spending on their pets, underpinned by the structural trends of humanisation and premiumisation. Far from being a Covid boom, elevated levels of pet ownership are here to stay and continue to drive growth.
“The inflationary environment creates pressures for both our customers and the business. We are conscious of the challenges faced by many consumers, and continue to prioritise making pet care as convenient and affordable as possible. We will never let price be a reason not to shop with us.
“We continue to actively manage industry-wide cost headwinds, which we see persisting in the near term, in particular the impact of foreign exchange, energy, and National Living Wage.”
