Bumper results for Pets at Home thanks to booming market for pet ownership
Strong growth in pet ownership continues as Pets at Home reports another set of strong trading results.
In the six months to 7 October 2021 group revenue surged by 18% to £677.6m, with like for like sales up by 28.6% compared to pre-pandemic levels.
Group reported underlying PBT growth of 77.2% to £70.2m, with growth of 68.3% on a 2-year basis.
It also announced interim dividend per share of 4.3p, an increase of 72% YoY, “reflecting continued strong cash generation and a robust balance sheet.”
Pets at Home said a stronger than expected and continuing growth in the pet population over the past 18 months is “materially increasing the size of our addressable market.”
It now expects revenues to reach £2.3bn over the medium term, compared to the £1.4bn achieved last year.
Pets at Home also saw a surge of interest in its pet care services. Client registrations across the store’s First Opinion veterinary practices averaged around 10,000 per week, around 10 per cent of all veterinary visits.
Peter Pritchard, Group CEO, said: “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.
“I am very proud of the progress we are making and was particularly pleased to note external recognition of our collective efforts through our recent Retail Week awards as Best Retailer and Best Place to Work 2021.
“I would like to express my sincere thanks to all our colleagues and Partners across the Group for their tireless work and dedication.”
Walid Koudmani, market analyst at financial brokerage XTB commented: “While investors may be optimistic after today’s report showed sustained momentum and rising market share, it remains to be seen how the company will continue implementing its strategy and how it will adapt to rising costs and an increase in competition.”
