Pets at Home reports profit drop but points to turnaround momentum
Pets at Home has said it is building momentum in its turnaround as it reported a drop in annual profits.
In the year to 26 March, group revenue edged down 0.8% to £1.47 billion, while consumer revenue increased 1% to £1.98 billion. Vet group consumer revenue rose 5% to £688 million, driven by strong Care Plan sign-ups and higher average transaction values.
Subscribe to TRBRetail consumer revenue, however, fell 1% to £1.29 billion against a subdued market backdrop. The retailer said its turnaround plan, launched in the third quarter, drove improving sequential sales and volume growth throughout the second half.
Group underlying pre-tax profit declined 30.2% to £92.8 million, while retail underlying pre-tax profit fell 57.8% to £30.8 million, in line with guidance. In contrast, vet group underlying pre-tax profit rose 10.4% to £83.8 million.
James Bailey, Pets at Home recently appointed chief executive, said: “Pets at Home is a business with many strengths, a strong shared purpose and great potential and I am excited to lead it through its next chapter.
“I have spent my early weeks immersing myself in the business, meeting colleagues and practice owners, understanding our customers and learning about the capabilities we have across the group.”
He added: “Material progress has been made over the past six months stabilising the retail business, delivering improved satisfaction and better availability.
“We have the opportunity now to build momentum through profitable volume led growth in retail while continuing to execute the proven growth levers of our Vet business and launch our Insurance offering.”
Looking ahead, he said: “We have clear priorities for FY27 and from what I have seen so far, I am confident we can build a great future for Pets at Home, which I look forward to updating on later in the year.”
