Pets at Home has seen its half-year profits before tax slip by 9.3% to £59.2m with increased freight and energy costs being given as reasons for the drop.

But the UK’s largest pet retailer said that consumer demand remains strong, with a record number of UK pet owners continuing to prioritise spending on their pets, underpinned by the structural trends of humanisation and premiumisation.

In fact, the group has reported growth in revenues of 7.3% to £727.2m in its half-year finanacial report. Sales throughout the group have accelerated through the period – driven by record numbers of new customers.

Retail revenues are up by 6.8%, helped by an average of over 750,000 new Puppy and Kitten Club members or an average of 29,000 per week. This figure is three times pre-pandemic levels

Vet revenues increased by 12.4, boosted by an average of 8,800 new clients per week. The client base now stands at 1.7m.

Group underlying profit before tax was down 9.3% to £59.2m in line with plan, impacted by increased freight and energy costs and the YoY increase in investment in digital assets.

There will be an interim dividend per share of 4.5p, an increase of 4.7% YoY.

Lyssa McGowan, Chief Executive Officer, said: “In my first six months as CEO, I have spent my time forming a deep understanding of the business and sector, learning from the ground up how the business operates. I am more convinced that Pets at Home is well positioned to capitalise on an attractive growth opportunity in our structurally growing pet care market, supported by our unique blend of products and services, deeply embedded culture and expert, passionate colleagues, and partners.

“Our first half performance shows progress and resilience across the business. In a challenging macroenvironment, the pet care industry remains in growth across all channels, and we have continued to acquire new customers at an impressive rate, setting new records for customer numbers in recent months.”

Other highlights from the financial report:

• Continuing to invest in unique ecosystem - despite external headwinds – to capture a growing share of the growing market
• Big digital investment to improve customer experience and leverage our huge data capabilities and 30+ years of experience and customer insights
• Plan to transform 40 stores per year to new pet care centre format
• New distribution centre – the biggest investment in the company’s history – can support 10+ years of growth
• Omnichannel capabilities enable customers to get what they want, when they want, how they want, including advice