Yahoo Finance Pets at Home continues to benefit from booming ownership as profits hit £70m
The boom in pet ownership continues to help Pets At Home hit new records in sales as dog and cat lovers turn to more premium food and products to pamper their pets, the company said.
Bosses admitted they are still experiencing difficulties in supply chains but despite the issues hitting the entire retail sector, pre-tax profits for the six months to October 7 soared 81.3% to £70.6 million.
Revenues were also up 18% to £677.6 million, including retail sales jumping 21.9% on a like-for-like basis, online sales up 21.5% on a year ago and revenues from its vet group grew 26.2% like-for-like.
The company said it expects to continue benefiting from the rise in ownership, with profits and sales for the year likely to hit the top end of market expectations.
Our pet care strategy continues to deliver, we continue to take market share and improve spend per customer, and the benefits of our investment in capacity and capability are really starting to deliver
Peter Pritchard, chief executive
All areas saw growth, including food revenue up 21.4% to £336.7 million and sales of accessories such as dog toys and training devices rose 20.9% to £257.7 million.
Pet owners also wanted to show off their new dogs, with revenues at Pets at Home’s grooming services up 62.2%. The massive jump was, in part, due to all salons closing for 10 weeks during the pandemic a year ago.
At the vet business, like-for-like revenues rose 26.2%, although overall sales fell 14.7% to £56.8 million due to the sale of Pets at Home’s vet hospital business.
Outgoing chief executive Peter Pritchard told the PA news agency that he has not yet seen a drop-off in new pet ownership.
“The new number of puppies and kittens is still rising at a similar rate to months earlier, so we are really positive,” he said.
The chief added that the company is seeking to limit price rises as much as possible despite rising inflation and invest in its value proposition.
He said the company also benefits from the fact that 80% of its suppliers are UK-based.
Mr Pritchard added: “Our business has never been more robust.
“Our pet care strategy continues to deliver, we continue to take market share and improve spend per customer, and the benefits of our investment in capacity and capability are really starting to deliver.
“Notwithstanding some near-term, industry-wide challenges, we continue to grow ahead of our plans and, based on trading year to date, we are on track to report a record year of sales and profit growth.”
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