Pets at Home posts strong revenue growth
Pets at Home has posted a 6.1% increase in group like-for-like sales in its first quarter.
In the 16 weeks to 19 July group revenue climbed by 8.1% to £277.4 million. This included a 6.9% increase in retail revenue to £245 million and an 18.4% rise in veterinary group revenue to £32.4 million.
Meanwhile, retail like-for-like sales were up 5.3% in the period.
Peter Pritchard, Pets at Home chief executive, said: "I am really pleased with our start to the year, particularly as trading across both retail and the vet business has been consistently strong.”
During the quarter Pets at Home launched a new 'easy repeat' delivery service across 350 online products which offers customers automatic repeat delivery of products to their home or for them to collect in-store.
Pritchard added: “There are so many initiatives that are working: great promotions and more lower prices, capitalising on the hot weather with our biggest ever summer and cooling product range, the launch of our easy repeat online delivery service, and an excellent 'Best Start in Life' puppy healthplan campaign in vet practices.“
However, the chief executive said there was a need for Pets at Home to sharpen its focus if it is to become a business that will continue to "win over the long term”. This will include maximising its assets and data as an integrated pet care business and reinvigorating the customer experience in-store.
He added: “We know one of the biggest opportunities in our business is to accelerate the maturity and returns of our vet practices. We therefore need to address the challenges, such as the shortage of veterinary practitioners and the associated cost and cashflow support that is required. At the same time, there will always be a need to keep our retail pricing competitive.”
Looking ahead, he said: “I know we have the capability to address these challenges whilst continuing to deliver the three-year financial plan we have committed to. I am confident that we have a really exciting future ahead and am looking forward to sharing this strategy in more detail at our November interim results presentation."
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