The petcare retailer and vet operator said it is confident in its growth strategy and is ‘not threatened’ by an ongoing watchdog review into the vet industry
Pets at Home has seen profits dip after being hit by supply problems and poor sales of some accessories.
Despite this, the retailer, which also operates vet practices, insisted it was pressing ahead with expansion plans and was “not threatened” by an ongoing investigation into the industry by the competition watchdog. Shares in the company, which has its headquarters in Cheshire, rose on Wednesday morning, following the announcement.
The chain reported a pre-tax profit of £105.7million for the year to March, down 13.7% on the previous year. The company admitted that profits were “impacted by short-term availability issues as we transitioned to our new DC (distribution centre) and weaker performance of discretionary accessories”.
It comes after bosses slashed profit forecasts in January, blaming a slump in customer spending. Pets at Home revealed that total group revenues grew by 5.2% to £1.5billion for the year, with 5.1% like-for-like growth.
Revenues from its 450 stores grew 4% for the period, as shoppers continued to buy the same quantity of goods during the final quarter, helping to offset slowing inflation in food and “softer” accessories sales. Meanwhile, the group, which runs more than 450 vet practices, saw revenues jump 16.8% amid the division’s continued expansion.
However, the industry is facing increased scrutiny after the Competition and Markets Authority raised concerns pet owners could be overpaying for medicines and launched a full market investigation. Pets at Home said: “We believe that our vets growth strategy is not threatened by the CMA’s review into the vet sector.”
“Our key building blocks for growth support competition and deliver better outcomes for consumers.” The company maintained its financial outlook for the upcoming year, noting a “low single-digit” growth in its veterinary business over the last six weeks, despite a 2% drop in retail.
Lyssa McGowan, the chief executive, said: “Full-year 2024 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.”
