Pets at Home lifts full-year profit guidance
Pets at Home lifted its full-year profit guidance on Tuesday as it hailed record third-quarter consumer revenues.
Pets at Home Group
The pet retailer said in an update that trading momentum remained robust into the fourth quarter, and with eight weeks of the year left to trade, it now expects FY23 group underlying pre-tax profit to be towards the upper end of the consensus range of £126m to £136m. This is ahead of previous guidance of around £131m.
The company said group revenues rose 8.8% in Q3 to £347.5m, while consumer revenue was up 9% on the same period a year earlier, with growth underpinned by a record number of consumers and "pleasing" volume growth. Compared with pre-pandemic levels, consumer revenues were ahead more than 30%.
Vet Group revenue was up 18.1%, with like-for-like revenues ahead 18%. Meanwhile, retail revenue was 8% higher, with LFL revenues up 7.6%, including a record trading day of more than £8m.
Chief executive Lyssa McGowan said: "We delivered a really pleasing Q3 with acceleration in sales momentum across the platform. Importantly, the quality of our growth remains strong as we continue to grow volumes and attract new consumers through offering compelling value and service, in what remains a challenging inflationary environment.
"It was particularly pleasing to see our accessories category return to growth, supported by the strong performance in our Christmas range, demonstrating that consumers still want to treat their beloved pets in these challenging times. Our Vet Group continued to grow its client base, adding 8,000 new clients a week in Q3, with annualised average practice revenues now reaching £1.1m."
At 1400 GMT, the shares were up 7.4% at 355.80p.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "It’s likely the group is seeing customers spend less on higher margin goods like pet accessories, and a shift to less lucrative food and essentials, but overall this isn’t holding the group back. After all, only certain things in life are guaranteed: death, taxes and feeding your dog."