Pets at Home Shares Surge 11% After Raising Outlook

  • Pets at Home group revenue up 8.8%
  • Veterinary division revenue increased 18.1%.
  • The group now expects PBT towards the upper end of guidance.

Pets at Home raised its profit forecast after reporting strong demand across its divisions in its Q3 trading statement on Tuesday, causing its shares to rally 11%.

The UK’s largest pet care retailer saw a 8.8% increase in total group revenue, driven by strong sales across both its retail and veterinary divisions.

The retail division, which includes pet food and accessories, saw a 8% increase in retail revenue, with a record trading day of £8m and growth in all categories.

Meanwhile, the veterinary division, which provides pet health services, saw a 18.1% increase in revenue, reflecting the company’s commitment to providing high-quality care for pets. As previously mentioned in our pre-trading update, the group’s veterinary services have benefitted greatly following a surge in pet demand during the pandemic.

But a key measure includes the group’s profits, which were previously impacted by increased freight and energy costs. However, Pets at Home commented on its “resilient gross margin performance” as the company gained a strong grip on operating costs which supported good profit across the business.

“We delivered a really pleasing Q3 with acceleration in sales momentum across the platform,” commented Lyssa McGowan, Chief Executive. McGowan continued, “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.”

As a result, the group stated robust trading momentum has continued into Q4, causing the group to expect underlying profit-before-tax towards the upper end of current guidance of £126m and £136m.

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