Pets at Home nears £2 billion in yearly consumer revenue

Pets at Home hit group revenue of £1.5 billion ($1.9B/€1.76B) in FY24, from 31 March 2023 to 28 March 2024. This is an annual increase of 5.2% annual from £1.4 billion ($1.78B/€‎1.64B) in 2023. 

Retail revenue rose by 4%, in line with the company’s expectations. The segment was driven by volume growth, a reduced impact of inflation, and a more moderate performance within the accessories category.

The food segment grew 9.3% in FY 2024, accounting for £814.2 million ($1.03B/€957M) of the total retail revenue. Accessories declined 4.3% to £465.5 million ($593.8M/€547.4M). Going forward, the retailer has plans to enhance the accessory segment through “innovation and premiumization”.

Underlying Profit Before Tax (PBT) fell to £132 million ($162.3/€155.2M), reduced by 3.2% YoY. Pets at Home attributed it to “short-term availability issues” and “weaker performance of discretionary accessories”.

Consumer revenue increased from £1.7 billion ($2.19/€1.99B) in 2023 to £1.9 billion ($2.4B/€€2.23B) this year. The pet retailer said that 10% of this revenue stream was linked to its 1.7 million subscriptions.

Pets at Home has now 7.8 active members of its loyalty program Pets Club, a 2% than in FY23.

Vet business

Veterinary experienced a significant revenue increase of 16.8% YoY, attributed to higher average transaction value and increased clinical capacity resulting in more visits.

The segment brought in £576 million ($734.8M/€677M) in customer revenue and generated £62 million ($79M/€72M) PBT. The average practice revenue increased by 14%, according to the firm. 

Pets at Home opened 3 new vet practices and 26 practice extensions in the 12 months to March 2024.

A pivotal year

CEO Lyssa McGowan defined FY24 as a “pivotal year for the business”.

Key strategic highlights included the transition of store logistics to the Stafford Distribution Center, the addition of 5 new pet care centers, the refitting of 41 stores, building a new digital channel and enhancing physical estate.

The new distribution system fully supports the logistics of all stores, according to the company. In the coming year, it targets the complete fulfillment of its online orders.

Outlook for FY25

Outlook for the next financial year remains “unchanged”, with Pets at Home expecting underlying PBT to reach approximately £144 million ($183.7M/€169.3M).

The company showed confidence in the resilience of overall pet care spending and shared its shared hopes to begin benefiting from “previous investments and key productivity programs”.

“Our medium-term strategy and financial framework is unchanged and, looking ahead, the fundamental strengths of the business position us well to deliver growth”, concludes McGowan.