Weak sales and rising costs send Pets At Home's profits sliding
Pets At Home says that a tough market for pet accessories and higher costs have sent its annual pre-tax profits down 13.7% to £105.7million.
Pets At Home says that a tough market for pet accessories and higher costs have sent its annual pre-tax profits down 13.7 percent to £105.7million.
It said that although its revenues for the 12 months to March 28 grew 5.2 percent to £1.5billion, its profits tumbled due to weaker sales in its stores, disruption caused by its move to a new central distribution centre, and higher operating costs, like the National Living Wage increase last year pushing up its staff costs.
Despite the fall in its profits, Pets maintained its full year dividend at 12.8p per share, a payout worth approximately £60million to its shareholders.
Although Pets’ trading at its stores is down two percent since the start of its new financial year, chief executive Lyssa McGowan was confident that it will hit its full year targets, as it expects conditions to improve from the second quarter onwards.
“The fundamental strengths of the business position us well to deliver growth,” she said. “We hold a leading position in a structurally growing market, with an unrivalled retail store network, and a unique, differentiated and integrated vet business.”
Peel Hunt analysts Jonathan Pritchard described its 2024/25 performance so far as “sluggish”. He added: “With retail in the red and vets back to low double-digits (growth), this is far from a disaster against tough comparisons but food inflation continues to cool and accessories are clearly a tough market.”
