Pets at Home has posted a full-year profit dip as it was impacted to short-term availability issues while it transitioned to its new distribution centre and weaker performance of discretionary accessories.
The retailer’s underlying pre-tax profit dipped 3.2% to £132 million for the year ended March 28, or 13.7% on a statutory basis when non-underlying costs were taken into account.
Despite the profits fall, Pets at Home’s chief executive Lyssa McGowan heralded a “pivotal year” where it “delivered some key building blocks of our platform for long term growth”, including opening its new warehouse, relaunching its brand and building its digital platform.
Total sales grew 5.2% to £1.5 billion for the period, with group like-for-like revenue rising 5.1%.
However, in the first six weeks of its current year, retail sales have dipped 2%, despite it seeing low double-digit growth at its vet group.
Last week, Pets at Home welcomed the CMA opening its vet market investigation and said it would “open up a conversation about much needed change and reform within the veterinary profession”.
Back in March, the watchdog warned it would launch a formal investigation as it revealed pet owners could be over paying for medicine or prescriptions due to failures in the sector.
Ms McGowan said: “The business has come together brilliantly to navigate any challenges faced this year, and we have delivered some key milestones of our strategy.
“Our medium-term strategy and financial framework is unchanged and, looking ahead, the fundamental strengths of the business position us well to deliver growth. We hold a leading position in a structurally growing market, with an unrivalled retail store network, and a unique, differentiated and integrated vet business.”
