Year-on-year revenue growth for Pets at Home
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Pet retailer Pets at Home Group is reporting year-on-year revenue growth by 4.4% to £203.7m in 12-week period from October to December.
The Cheshire-based group saw merchandise revenues flat at £177.4m, but services soared by 47.8% to £26.3m, reflecting joint venture vet practice fee income up 26.2% to £9.5m and the contribution from newly-acquired specialist referral centres.
The company said profit outlook for the full year looks “in line with expectations”.
Chief executive Ian Kellett said: "Vet services yet again performed strongly this quarter, where our strategy of providing a quality service to clients across both primary opinion and specialist referral centres is delivering results, and is a platform for continuing strong growth.
“In merchandise, whilst overall sales were softer than anticipated, online grew strongly, reflecting the momentum gained from our investments in seamless shopping.
“We saw a good performance in our Christmas range, where customers are responding to innovative products at great value for money, which we will reflect in new range launches later this year.
“We will also focus on delivering best value, starting with a very clear message to customers about the benefits of our high quality, UK produced private label foods, where we will be leveraging our competitive advantage.
“With a quarter to go, our profit outlook for the year remains in line with expectations, reflecting both the continued investment in our customer offer and ongoing efficiency initiatives.
“Our focus on becoming more specialist, and doing the right thing for our customers, remains at the forefront of our strategy. Our colleagues worked extremely hard over the busy festive period and I want to thank them all for their commitment and dedication."
Financial summary
- Group revenue growth of 4.4% to £203.7m
- Merchandise revenues flat at £177.4m
- Services revenues up 47.8% to £26.3m, reflecting Joint Venture vet practice fee income up 26.2% to £9.5m and the contribution from newly acquired specialist referral centres
- Group like-for-like revenue growth of 0.1%* reflecting continued strong growth in veterinary services, offset by more subdued trading across the Merchandise business
- Merchandise like-for-like revenue growth (0.5)%*
- Services like-for-like revenue growth 7.0%*
- Profit outlook for FY17 remains in line with market expectations
*Q3 FY17 has one fewer trading day than the prior year. The LFL growth calculation removes this difference and compares the 12 weeks from 14 Oct 2016 to 5 Jan 2017, with the 12 weeks from 14 Oct 2015 to 5 Jan 2016
Operational summary
- Store and services rollout on track, having opened 2 superstores, 6 vet practices and 11 grooming salons. On target to deliver FY17 rollout targets: 15-20 superstores, 45-55 vet practices and 50-60 grooming salons
- VIP club active members 3.7m, an increase of around 280,000 since FY16 year end. Card swipe rate at store tills remained consistent at 66% of revenues
- Integration of our new veterinary specialist referral hospitals progressing well, with best practice & cost benefits already being realised across the business
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