Pets at Home has emerged from a transitional year with total revenue growth of 5.2%, reaching the level of £1.5bn, according to its preliminary results for the 52-week period to March 28, 2024.
During the year, retail revenue grew 4.0% (4.1% like-for-like) with continued volume growth but slowing inflation in food and a softer performance in accessories. Vet group revenue grew 16.8% (like-for-like 16.5%) to reach record levels.
Underlying pre-tax profit of £132.0m was down 3.2% year on year, while statutory pre-tax profit was £105.7m, down 13.7%, attributed to availability issues connected to the transition to a new distribution centre (DC) and weaker performance of discretionary accessories.
During the year, the group has brought its new DC onstream, with all stores now being served from a single site, launched a new digital platform for customers and invested in stores, with five new sites opened and 41 refitted. The retailer now has 7.8 million active Pets Club members, up 2%, and 1.7 million subscriptions, now generating 10% of consumer revenue.
At store level, the group has introduced new frozen ranges, launched an own brand freeze-dried range, and exclusively partnered with Butternut Box to offer freshly-cooked dog food.
During the first six weeks of the new year, retail sales were down by 2%, which Pets at Home said was “broadly in line with plan”. In the next full year, the group is expecting non-underlying costs of c£7m reflecting further transition costs for the DC (£3m) and one-off support office restructuring costs (£4m), along with capital expenditure of £60m and a further £25m share buyback, following the £100m completed over the last two years. Total dividend per share was held at 12.8p, with the final dividend held at 8.3p.
Chief executive Lyssa McGowan said: “FY24 has been a pivotal year for the business, having delivered some key building blocks of our platform for long term growth. I am proud of the progress we have made in the year; we relaunched our brand, opened our new DC, built our new digital platform, made progress in our sustainability agenda, and enhanced our physical estate. The business has come together brilliantly to navigate any challenges faced this year, and we have delivered some key milestones of our strategy.
“Our medium-term strategy and financial framework is unchanged and, looking ahead, the fundamental strengths of the business position us well to deliver growth. We hold a leading position in a structurally growing market, with an unrivalled retail store network, and a unique, differentiated and integrated vet business. We know the nation’s pets better than anyone else, with over 10 years of analytical data on 10 million pets, and we now have a best-in-class digital platform, and a modern efficient DC.
“Above all else, we have the best colleagues in the industry, who use their passion and expertise to guide customers through their pet care journey every day.”
