Pets at Home has seen total group revenue rise by 1.9% to £789.1m, up 1.6% on a like-for-like basis in its first-half results for FY25, despite operating in a “subdued” retail market.
The pet specialist said its Vet Group remained a standout performer, with revenue growth of 18.6% in the 28 weeks to October 10, driven by a combination of increased subscriptions, higher average transaction values, and more frequent visits.
Meanwhile, the retail division posted a modest 0.1% revenue uplift as like-for-like (LFL) sales remained flat.
The business delivered a 14.1% increase in underlying profit before tax to £54.5m, up 47.3% to £51.1m on a statutory basis.
Pets at Home CEO Lyssa McGowan said: “The first half of FY25 was characterised by a subdued market, against which we outperformed. In Vets, our differentiated joint venture model continues to drive material outperformance over peers. In Retail, our customer satisfaction is excellent, our price position is strong, and we have tight control of our cost base.”
The retailer also warned changes to the minimum wage and National Insurance announced in the new government’s Budget last month would cost it £18m in the next financial year.
It said it aims to ”proactively mitigate these cost increases where possible, including through our ongoing productivity programmes and investments in automation”.
During the period the business reported a 3% increase in Pets Club members, bringing the total to 8.1 million, supported by the successful relaunch of the Club on the new digital platform. Vet Group’s new pet registrations remained robust, with 18,000 new sign-ups per week.
Looking ahead, Pets At Home expects the current subdued market conditions to persist throughout the second half of FY25, and has lowered its profit growth expectations as a result.
“We now plan for current rates of market growth to persist through the remainder of this year, lower than initially planned. As such, we now expect underlying PBT for FY25 to grow modestly from last year,” it said.
Despite this, McGowan added: “We are confident that market growth will improve in future, supported by long-established and unchanged structural growth trends.
“We are confident we have made the right investments building the capability to deliver attractive growth and returns for shareholders in the future.”
The pet specialist remains focused on its strategic investments, including its new digital platform, a growing network of stores, and its Stafford distribution centre, which continues to perform well.
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