Pets At Home – First Quarter Revenue Rises, As Pet Care Demand Remains Robust

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Pets at Home Group PLC (LON:PETS)’s first quarter revenue grew 6.0%, on a like-for-like basis, to £404.7m. That reflected broad-based growth across all channels.

The group continues to manage inflationary cost pressures through productivity and efficiency initiatives.

The group continues to expect full year underlying pre-tax profit to be in line with analyst consensus, which is currently £131m, with a range of £127-£136m.

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Lyssa McGowan, CEO, said: “Our performance has remained strong in the first quarter, underpinned by continued customer growth and high levels of retention.”

The shares rose 1.9% following the announcement.

Pets At Home's Earnings

Matt Britzman, Equity Analyst at Hargreaves Lansdown

“First quarter performance was solid, with new customer growth continuing and crucially strong retention of the 1.1m customers added last year. The pandemic fuelled pet ownership craze was a blessing for Pets at Home and those cats and dogs will need looking after long into the future. Attracting and retaining subscription-based revenue is a great strategy, the VIP and Puppy & Kitten Club continue to push on which gives attractive recurring revenue sources.

What’s very interesting with Pets at Home is its hybrid approach, omnichannel revenue continues to grow and was the standout this quarter. That’s testament to a lot of work that’s gone into boosting the online offering, with services like click and collect meaning customer journeys are a mix of online and in store. That’s a gold mine for cross selling other services like the groups in store vet and grooming practices.”

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