Pets at Home profits plunge despite veterinary growth

Pets at Home has outlined further veterinary growth despite an overall fall in profits in its interim results published today (26 November).

Half-year figures, for the period up to 9 October, showed a 6.7% rise in vet group consumer revenues compared to the previous year and an 8.3% increase in its underlying pre-tax profits to £44.9 million.

But, overall, the group’s underlying pre-tax profit was down by more than a third to £36.2 million, with the equivalent retail figure around 84% lower than the previous year.

Profit outlook

The results follow the company’s announcement of a downward revision to its profit outlook in September, along with the departure of former chief executive Lyssa McGowan.

Interim executive chair Ian Burke said he wanted to “establish a firm grip” on the company’s retail issues while maintaining its strong veterinary performance.

‘Clear purpose’

He added: “For [more than] 30 years, Pets at Home has been a business with a clear purpose, an established market and loyal customer base.

“But it’s clear that urgent and necessary action is needed to return the retail business to growth to meet both our own expectations and those of our investors.”

Although the group’s shares plunged in the wake of the September announcement, today’s news has so far been greeting more positively by the markets with prices up by around 2.3%.