Pets at Home remain dogged throughout pandemic as sales soar during lockdown
Pets at Home has cemented itself as a rare winner during the pandemic, as the group notched double digit revenue growth in the six months to October following an “exceptional period of demand” during lockdown.
The FTSE 250-listed firm thanked its allocation as an “essential” retailer during the coronavirus crisis for its 13 per cent like-for-like revenue growth in the second quarter.
Sales jumped 4.2 per cent compared in the six months to October to the same period last year, with almost a third of all sales from the company’s pet care services.
Chief executive Peter Pritchard told BBC Radio 4’s Today Programme: “It’s no surprise in that respect. The number one reason people buy pets is for companionship, and so they’ve made a huge difference during the pandemic. For some people, the only reason they’re going out during lockdown is to walk their dog.”
The group’s Puppy and Kitten Club members grew 25 per cent year-on-year over the six-month period. Pets at Home said “lockdown has, if anything, accentuated our emotional bond with pets, as they play a more significant role in our daily lives”.
“The last six months of trading have been like no other during my ten years in the business,” said Pritchard. “In spite of the ongoing and wide-ranging impact of Covid-19, there is much to be optimistic about.”
Pets at Home rolled out immediate changes in the initial outbreak of the pandemic including contactless collection of products for customers and direct-to-home healthcare subscription models.
“These measures… together with the inherent resilience of our pet care platform and the underlying pet care market, underpinned the strong momentum witnessed across both our retail and veterinary operations,” the group said in a statement.
Pets at Home’s vet division saw 1.2 per cent revenue growth over the period, as the company continues to scoop up the veterinary market share.
The group maintained an interim dividend per share of 2.5p, after declaring underlying free cash flow of £60.5m.
Pets at Home said it anticipates full-year underlying pre-tax profit to be in line with the last year, “with the estimated financial impact of the pandemic not fully offset by this year’s business rates relief”.
The group is now looking ahead to a potential no-deal Brexit once the transition period ends on 31 December, with actions being taken to mitigate any related impact on tariffs, logistics, vet availability and currency.