Pets At Home Group PLC on Tuesday said it expects ‘modest’ profit growth during its current financial year, as retail revenue falls during its third quarter amid ‘subdued’ consumer activity.
The Cheshire, England-based provider of advice, products and care for pets said it saw a 0.2% growth in total revenue during the third quarter to January 2, settling at £361.6 million.
Retail revenue declined 2.4% during the quarter, due to a ‘more challenging UK consumer backdrop with particularly weak footfall from October’.
It said revenue within its Vet division, however, climbed 21%, boosted by growth within its subscription service and average transaction values.
Active Pets Club members have risen to 8.2 million during the year to date, compared to 7.8 million a year prior.
The fall comes after Pets At Home warned last year that its profit would be hit by the slowdown of the pandemic boom in pet ownership.
The group left its full-year underlying pretax profit guidance unchanged, expecting ‘modest’ on-year growth.
Broker Peel Hunt forecast statutory pretax profit of £135 million for the year due to end in March, up 24% from the £105.7 million reported last year.
‘Against a still subdued consumer backdrop, we have maintained a disciplined gross margin performance, supported by strong Christmas seasonal sell through, and effectively managed our costs,’ Pets At Home said.
The group expects non-underlying costs of £11 million for financial 2025, upped from its previous £7 million forecast due to the phasing of costs associated with its exit from Northampton. All outstanding costs will be now incurred during financial 2025, rather than in 2026, as previously expected.
Shares in Pets At Home were up 1.0% at 221.00 pence each in London on Tuesday morning.
Copyright 2025 Alliance News Ltd. All Rights Reserved.
