Pets at Home published its half-year report on Tuesday, revealing that the pet retailer’s H1 consumer revenue 8.6% in the period, smashing their 7% growth target.
Pets at Home shares were up 2.57% to trade at 294p at the time of writing.
Total revenue increased to £774.2 million during the 28-week period ending 12th October, with comparable sales showing a growth of 6.2%.
The growth trend persisted into the initial weeks of the third quarter, recording a roughly 4% rise in comparable retail sales as the holiday season approached.
The underlying pre-tax profit of the group decreased by 19.3%, amounting to £47.8 million for the half-year, primarily attributed to the rise in digital investments.
The company’s CEO, Lyssa McGowan, said that, “our medium-term vision and strategy is to build the world’s best pet care platform. This will generate sustainable value for all stakeholders, as we create a better world for pets and the people that love them.
“We are the largest, and by far the most trusted, pet care business in the UK. We already have a leading 24% share of the £7.2bn UK pet care market, an industry supported by structural growth, underpinning resilience and predictability in our revenues.”
According to Susannah Streeter from Hargreaves Lansdown, “Desires to keep our four-legged friends fed, watered, and entertained have helped the company reach £1 billion in half-year sales. Conditions still seem clement for the pet chain, although the Competition and Markets Authority’s ongoing investigation into the vet sector is still a headwind.”
Susannah Streeter further explained that ,”While this isn’t the entire business case, an unfavourable set of rulings could hamper sentiment, but there’s cautious optimism that this won’t be the case.
“In broader business, fears that the lockdown surge in ownership would subside don’t seem to be materialising. Working from home habits have kept the trend strong, and recurring revenue is bedded in. However, given the competitiveness online, the company must ensure it keeps all its ducks in a row as it continues to expand.”