Pets at Home Shares Edged Higher on FY 2024 Interim Results

The Pets at Home Group PLC (LON: PETS) share edged 2.62% higher after releasing its FY 2024 interim results, including those from 28 weeks to October 12, 2023. The first half of the fiscal year marked a crucial phase in the company’s execution of its Petcare Platform strategy. 

The company successfully relaunched its brand, transitioned its stores to the new Stafford Distribution Centre (DC), and continued building its digital platform. H1 saw consumer revenues grow impressively by 8.6% to £1.0 billion, surpassing the company’s 7% target. 

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All of the firm’s channels experienced growth, and it made significant strides in retaining and attracting new customers. The underlying consumer demand remained robust, supported by structural trends driving sustained market growth.

Pets at Home closed H1 with 7.8 million active VIP members, marking a 3% YoY increase. While sign-ups for puppies and kittens returned to expected levels, the veterinary sign-ups remained strong at over 18,000 per week. 

The growth was fueled by early-life pet acquisitions and attracting new clients with older pets, drawn to the firm’s compelling consumer offering. The company’s total group revenue increased by 6.5% to £774.2 million, with Group like-for-like (LFL) revenue up 6.2%.

The Vet Group reported remarkable revenue growth of 19.0%, with LFL sales up 17.3%, notably accelerating in Q2. This achievement was supported by record sales, higher Average Transaction Value (ATV), a favourable product mix, and increased visits. 

Retail revenue grew by 5.2%, with LFL sales up by the same percentage. Although Q2 sales experienced a 2.7% LFL growth dip due to short-term availability issues during the DC ramp-up in Q1, the situation was promptly resolved. 

Underlying profits before taxation (PBT) stood at £47.8 million, a 19.3% decrease influenced by continued investments in the firm’s platform, including higher logistics costs (c£8 million) and the brand relaunch (c£2 million). The profit distribution between H1 and H2 aligns with the firm’s expectations outlined in Q1.

Underlying basic EPS was 7.4p, down 22.9%, and statutory basic EPS was 5.2p, down 40.2%. The interim dividend per share remained steady at 4.5p.

Pets at Home (PETS) share price. 

The Pets at Home share price edged higher, then fell back after releasing its interim results for FY24.