Pets at Home “outperforms” in H1 amid a challenging market period
The company reported stagnant growth in the retail segment due to a slowed market but exceeded expectations in its veterinary division.
British pet retailer Pets at Home posted £1.05 billion ($1.32B/€1.25B) in group consumer revenue for the first half of the 2025 fiscal year (FY) ending 10 October 2024. This is a 4.1% year-on-year (YoY) increase from slightly over £1 billion ($1.26B/€1.19B) last year.
Pets at Home’s total group revenue or statutory revenue stood at £789.1 million ($995M/€945.6M), up from £774.2 million ($975.9M/€927.7M) previously.
Operating costs fell by 3.5%, while gross margins remained flat at 46.3% YoY growth.
CEO Lyssa McGowan noted that Pets at Home “outperformed” in H1 2025.
Category-wise performance
The retail segment contributed £696.3 million ($877.7M/€834.4M) in consumer revenue, reflecting flat growth of 0.1% YoY. The retailer attributed this to a challenging retail market and consumer caution in recent months.
Despite subdued expectations for H2, McGowan expressed faith in the group’s positioning: “In retail, our customer satisfaction is excellent, our price position is strong and we have tight control of our cost base.”
On the other hand, income for the veterinary group increased by 13% YoY to £352.3 million ($444.1M/€422.1M) from £311.7 million ($392.9M/€373.5M) last year. This growth was supported by increased subscriptions, visits and average transaction values.
Operational advancements
In H1 2025, Pets at Home accelerated its digital transformation with the launch of a new digital platform, which led to almost double the sales via its app. This has been recognized as a significant opportunity for incremental and profitable digital sales growth.
The retailer’s Stafford-based distribution center supported “near-record availability in stores” and is expected to drive savings in FY2026 through automation in e-commerce operations.
Pets at Home also invested £15.6 million ($19.6M/€18.6M) into in-store development, including opening 3 new stores and completing 14 store refits in the assessed period.
Financial outlook
Looking ahead, Pets at Home anticipates medium-term market growth of 4% per annum, supported by trends toward pet humanization and premiumization.
The company also plans to explore organic growth opportunities and strategic investments, including potential bolt-on mergers and acquisitions.
The ongoing transition to online picking systems, expected to be completed by early 2025, is poised to deliver positive results in the next financial year.
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