Pets at Home is selling more food but less accessories and fashion

Pets at Home posted group revenue of £727.2 million (€841M) for its H1 FY 2023, 7.3% more than last year. Retail revenue grew 6.8% to £661.5 million (€765.4M), with the omnichannel increasing 16.2% to £108.9 million (€126M).

Food sales increased by 15.1%, “underpinned by strong volume growth.” The sale of accessories, especially dog toys and fashion, went down by 3.5% in the 6 months to 13 October 2022.

Consumables, including cat litter, hygiene products, and licensed medicines, registered a “strong growth,” according to the company. The grooming business increased 7.4% in H1, with 4% more dogs groomed in the last 12 months.

Pets at Home veterinary business jumped by 12.4% until October to £63.8 million (€73.8M). Telehealth consultations increased by 8%.

Less profit

The group profit before tax was £59.2 million (€68.5M) against £65.3 million (€75.5M) in FY 2022. The company told investors this was impacted by “increased freight and energy costs.”

“We continue to maintain a tight operational grip on industry-wide cost headwinds, including raw materials, wages, energy, and freight costs,” it said.

Despite the current headwinds, the British retailer expects to end the year by reaching £131 million (€151.5M) in profit. “The business remains highly cash generative, and we expect to finish the year in a net cash position.”