Pets at Home ups profit forecast; Q3 revenue £347m

Lyssa McGowan, Pets At Home CEO

Shares of Wilmslow-based pet and vet retailer Pets at Home Group rose about 10% after it published a third-quarter trading statement for the 12 week period to January 5, 2023, in which it raised its full-year underlying profit before tax guidance after record Q3 consumer revenues.

The group said consumer revenue was up 9% year-on-year and up over 30% versus pre-pandemic levels.

Group revenue in Q3 was up 8.8% to £347.5 million.

In its outlook, Pets at Home said robust trading momentum continued into Q4, and with eight weeks of the year left to trade, its now expects FY23 group underlying profit before tax towards the upper end of the current consensus range of £126 million-£136 million, ahead of previous guidance of £131 million.

Pets at Home CEO Lyssa McGowan said: “We delivered a really pleasing Q3 with acceleration in sales momentum across the platform.

“Importantly, the quality of our growth remains strong as we continue to grow volumes and attract new consumers through offering compelling value and service, in what remains a challenging inflationary environment.

“It was particularly pleasing to see our accessories category return to growth, supported by the strong performance in our Christmas range, demonstrating that consumers still want to treat their beloved pets in these challenging times.

“Our Vet Group continued to grow its client base, adding 8,000 new clients a week in Q3, with annualised average practice revenues now reaching £1.1m.

“I am also delighted to announce the appointment of Kathryn Imrie as our new Chief Consumer Officer, a key role as we further integrate our consumer offering. Kathryn will bring a range of critical skills and external expertise into the business.

“This completes the recent changes to our executive team and marks a step-change in our journey to build a consumer-centric, omnichannel, pet care platform.”