Profits dip at Pets At Home despite revenues jump

29th May 2024 07:02

(Sharecast News) - Pets At Home posted a jump in annual sales on Wednesday but saw profits fall back, hit by availability issues.

The retail and vet group said revenues in the 52 weeks to 28 March increased by 5.2% to £1.48bn.

Within that, retail sales improved 4%, or 4.1% on a like-for-like basis, while vet group revenues jumped 16.8% to £146.5m.

Underlying pre-tax profits fell 3.2%, however, to £132m, in line with internal expectations. Pets At Home said profits had been hit by short-term availability issues after it moved into its new distribution centre, as well as a weaker performance in discretionary accessories.

It noted: "Returning accessories to growth is a key focus in the year ahead and we have a strong plan to do so."

Pre-tax profits fell 13.7% to £105.7m, on higher costs.

Lyssa McGowan, chief executive, said: "The 2024 full year 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 mad in the year: we relaunched our brand, opened our new distribution centre, built our new digital platform...and enhanced our physical estate."

Looking to the current year, the FTSE 250 group said current trading had been "broadly in line with the plan" in the first six weeks, with low double digit growth in the vet group and a 2% dip in retail sales.

It attributed the fall in retail sales to "the annualization of our strongest comparative periods, and some short term disruption as we transitioned to our new digital app".

"We are currently projecting that these impacts will ease from the second quarter onwards," it said.

Full-year underlying pre-tax profit guidance was left unchanged at around £144m.