Pets at Home expects to continue growing market share
Pets at Home (LON:PETS) recorded sales in excess of £1bn for the first time as demand for pets soared while people were locked in their homes.
The FTSE 250 company estimates that the number of pets in the UK has grown by 8% over the past year.
The animal retailer even said the boom caused a shortage in pet food.
Peter Pritchard, chief executive of Pets at Home, commented:
“Covid-19 has structurally changed the dynamics of the pet care market. We estimate that the rising level of pet ownership, combined with structural demand drivers such as premiumisation and humanisation, has increased the outlook for growth across our addressable market, and in conjunction with our expectations of continuing to take market share, provides a tailwind to the £600m customer revenue opportunity we see across our business over the medium term.”
Pets at Home saw its revenue levels grow by 7.9% to £1.1bn during the year ending in March, a record in the company’s history which spans over three decades.
Profits rose to £116m despite £30m coronavirus-induced costs, while underlying profits remained steady having accounted for the £30m sale of five pet hospitals.
Pets at Home is expecting a continuation of this trend, and suggests it can further increase its sales, due to raised ownership as well as owners splashing out more on their animals.
Susannah Streeter, senior investment and markets analyst at Hargreaves and Lansdown, commented:
“The tail is wagging happily at Pets At Home with retail sales reaching £1 billion for the first time.”
“The company has clawed opportunity from the soaring popularity for pets during the pandemic, with ownership estimated to be up 8% over the year. Lockdowns proved an ideal opportunity for people to settle in a new member of the household. It’s the demand for array of goods and services to keep them fed, watered and entertained which have returned a big stick of revenue to the group,” Streeter added.