Pets bites back after weak health and hygiene sales
CHESHIRE-based pet products specialist Pets at Home is reporting revenue growth of 6% to £404.5m in its half-year results, despite a weaker than hoped for performance for its health and hygiene products.
Seasonal challenges in those lines off-set like-for-like sales growth in the period to October 8 of 1.8%, driven by strength in advanced nutrition, VIP Club services, and Omnichannel.
Merchandise revenues were up 4.1% to £362.6m while income from services rose 26.2% to £41.9m with fees from joint venture veterinary practices up 20.7% to £18.4m and good a performance from North West Surgeons, its recently acquired specialist referral hospital.
The company opened six Pets at Home superstores, including the opening of its relocated Rugby superstore, which closed in September 2014 and Barkers stores, in Marlow, Buckinghamshire and Ilkley, North Yorkshire.
It also launched 10 Groom Room salons and 15 veterinary practices, alongside three further 24/7 and extended hours opening trials in selected vet practices.
The company said it was on track to deliver rollout targets of between 20 and 25 Pets at Home stores, five Barkers, 50 to 55 vet practices and 55 to 60 grooming salons in 2016.
Chief executive Nick Wood said: “We remain pleased with the growth of advanced nutrition, vet and grooming services during the first half of the financial year, supported by growing maturity in the VIP loyalty scheme.”
“Whilst trading in parts of the business has been weaker than expected, the core strategic drivers are performing well and in order to support their growth, we continue to invest in our colleagues and seamless shopping experience.
“As we highlighted previously, profit growth will be weighted to the second half, as the strong health & hygiene comparatives ease. Our full year profit outlook is broadly in line with market expectations.”
