The chief executive of Pets at Home said he remains confident about its strategy despite pre-tax profits plummeting close to 40%.
The pet chain saw its underlying pre-tax profit rise 6.1% to £89.7m in the 52 weeks to March 28. However, profit before tax declined 37.7% to £49.6m as it set aside more than £40m for a huge restructure programme across its vet portfolio.
Pets at Home had earlier announced it had launched the restructuring plan to buy out the veterinary joint ventures it runs with independent vet practices – 19 have now closed.
Revenue however rose by 6.9% to £961m, due to a 5.7% rise in like-for-like sales.
CEO Peter Pritchard said the business was ‘trading strongly’ and ‘taking share across the pet market’.
He said: “Customers are loving our lower prices, the convenience of subscription packages, high-quality veterinary care and pet health plans. We launched our pet care strategy last year and we’re already making good progress, bringing our retail and vet businesses closer together.
“I’m pleased with our progress and the results we have delivered, but there remains plenty to do.”