Pets at Home lifts guidance as demand for vet services jumps

Pets at Home has signalled that the pandemic-era boom for household pets will continue as it raised its annual profit guidance for the year.

The petcare and veterinary service provider has benefited during the Covid-19 crisis from a surge in pet ownership, a trend that started during lockdown and has continued as people are able to work more flexibly.

Pets at Home said new client registrations at its veterinary practices averaged 8,000 per week, increasing its active client base to 1.7mn. Revenue at its veterinary business grew 18 per cent in the 12 weeks to January 5, compared with a year earlier.

The retailer has also expanded its “VIP” membership service by 500,000 since last year to 7.6mn, with registered customers receiving discounts for orders.

Pets at Home said it expected underlying full year pre-tax profit to be close to £136mn, up from previous guidance of £131mn. 

Its share price rose more than 11 per cent in morning trading on Tuesday to 368p, which remains 30 per cent down on its all-time high of 518p.

“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,” said the group’s chief executive Lyssa McGowan.

The Manchester-based pet supplies retailer recorded revenues of £347.5mn in the 12 weeks to January 5, up 8.8 per cent on the previous year.

McGowan, who joined the company last year from Sky UK, said Pets at Home’s Christmas range performed strongly, suggesting that owners treated their pets over the holidays despite the economically challenging period.

Analysts at Peel Hunt said the group’s “strong momentum” led to the upgrade to forecasts, noting the higher demand for veterinary care and the company’s net cash position.

Analysts at Numis called the results “encouraging”, adding that sales grew in all categories of the business “despite a slower period for growth in the pet population” and that the company had a “data-led opportunity” to improve its customer proposition.

The number of pet dogs in the UK increased from 8.9mn to 10.2mn between 2018 and 2022, according to veterinary charity PDSA. Roughly 27 per cent of Britons own a dog, according to its latest survey.