Pets At Home sees profits leap as record sales offset rising costs

Retailer Pets At Home has posted better-than-expected annual profits as record sales helped offset soaring energy costs and higher investment spending.
By Greg Wright
Published 25th May 2023, 08:23 BST

The group reported underlying pre-tax profits of £136.4m for the year to March 30, up 4.8 per cent or 8 per cent higher on a 52-week basis as the boom in pet ownership seen since the pandemic started helped sales jump 6.6 per cent to £1.4bn.

Like-for-like sales jumped 13.4 per cent across its Vet Group chain, while retail revenues lifted 7.5 per cent . The profits leap came despite energy costs soaring by £14.9m and a £5.9m spend on digital investment.

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On a reported basis, pre-tax profits fell 17.7 per cent to £122.5m after last year’s figures were boosted by gains from the sale of its specialist group business, as well as costs of its new Stafford warehouse.

Pets At Home has posted better-than-expected annual profits as rising sales helped offset soaring energy costs and higher investment spend. Picture: Tim Goode/PA WirePets At Home has posted better-than-expected annual profits as rising sales helped offset soaring energy costs and higher investment spend. Picture: Tim Goode/PA Wire
Pets At Home has posted better-than-expected annual profits as rising sales helped offset soaring energy costs and higher investment spend. Picture: Tim Goode/PA Wire

Chief executive Lyssa McGowan unveiled plans alongside the results to “build the world’s best pet care platform”, with aims for an all-in-one pet care app, offering services including allowing customers to book surgical veterinary appointments, order repeat prescription deliveries and manage nutrition subscriptions.

Her growth plans also include targeting growth of 10 per cent for pre-tax profits and 7 per cent for sales each year. But costs of investment are set to hold back profits growth over the year ahead, with the group sticking by guidance for underlying pre-tax profits of around £136m in 2023-24.

It is set to take another £15m in costs from its switch to the new warehouse.

Related topics:Pets at Home