Pet firm sees soaring demand for goods as a result of crisis
Cheshire based Pets at Home saw a huge rise in demand for its products as a result of the coronavirus crisis.
The firm announced that trading for the last 12 months was slightly ahead of expectations.
In a market update the firm said for most of our fourth quarter the group traded in line with market expectations.
In the closing weeks of the financial year the firm experienced exceptional levels of demand, both in-store and online, as the Covid-19 crisis developed.
Existing customers increased average basket size by pulling forward purchases and new customers accessed pet products and healthcare services.
Far East supply stabilised relatively quickly which meant product availability held up well.
The company now expects underlying pre-tax profit for the full year to be slightly above the top end of the range of current market expectations.
The company said its balance sheet is resilient and the firm has strong and supportive relationships with our banking partners.
Pets at Home has extensive headroom on debt capacity and covenants with a significant proportion of our committed £248m Revolving Credit Facility (RCF) remaining available for drawdown.
Total liquidity including cash balances is approximately £160m, and we expect to end FY20 with a net debt/EBITDA ratio pre IFRS16 of under 1.0x.
The firm has been designated by the government as an “essential retailer”.
Peter Pritchard, group chief executive, said: “While FY20 has undoubtedly ended strongly for Pets At Home during this unprecedented time, the period ahead is uncertain for us all, and Pets At Home will not be immune to these challenges that we collectively face.
“I am extremely grateful that our colleagues and operations have shown such resilience and flexibility to meet the recent exceptional level of demand from both existing and new customers.
“As ever, in difficult times consumers turn to trusted brands and advice, and that is why we are working tirelessly to ensure that we continue to provide essential products and healthcare services for the UK’s pets.
“The health and safety of our colleagues, Partners, suppliers, customers and pets remains our top priority.
“We continue to take all appropriate action in line with Government advice and remain vigilant to the potential impact of COVID-19 as we start the new financial year.
“We are also providing support for the communities that need us through £1.1m of funding to nominated pet charities, a £1m crisis fund for colleagues and discounts to NHS workers as they care for the nation’s health.
“Finally, I would like to thank all our fantastic colleagues, Partners and customers for their amazing support during this challenging period. Amidst an unprecedented backdrop, never has our role as a pet care provider been more important, and never have we been more determined to serve the nation’s pet owners”.
