Handforth headquartered retailer, Pets at Home Group, outperformed subdued market conditions according to its Interim Results for the 28 week period to 10th October 2024.
The retailer now believes it is in a strong position for the coming financial year following investments in its distribution network, ecommerce offer and digital platforms, with slowdowns in pet market growth historically short-lived.
In the 28 weeks 10th October, Total Group revenue grew 1.9% to £789.1 million; while retail revenue was flat at 0.1% growth, Vet Group revenue growth remained strong at 18.6%. The business has also seen growth to its Pets Club, now totalling 8.1 million members, while app revenues have nearly doubled following the launch of a new digital platform.
Operating costs also fell 3.5% thanks to a mix of goods cost control and productivity measures that mitigated rising wage costs, and further rises to the Living Wage and Employer NICs will make for an £18 million cost increase in the coming year. Looking ahead, Pets at Home Group anticipates 4% market growth, and is targeting 7% consumer revenue growth.
Lyssa McGowan, Pets at Home CEO:
“The first half of FY25 was characterised by a subdued market, against which we outperformed. In Vets, our differentiated joint venture model continues to drive material outperformance over peers. In Retail, our customer satisfaction is excellent, our price position is strong, and we have tight control of our cost base.
“We have a clear and consistent strategy to unlock value and H1 has seen further progress against this.”
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