Pets at Home Group PLC (LSE:PETS) reiterated its full-year guidance alongside its interims after it worked through what it described as “a period of the highest execution risk” with the launch of its strategy.
Petcare Platform, the group’s new digital platform, aims to provide pet owners with an app to purchase essentials and organise healthcare for furry friends.
It is expected to be released by the end of the financial year.
Investment into the platform caused underlying profit to sink close to 20% to £47.8 million in the first half.
Logistics costs of £8 million and a brand launch which cost £2 million also weighed on earnings, but the group had anticipated this drop and is still confident in achieving full-year profits in line with analysts' expectations of £136 million.
In the first half, the group also opened its new distribution centre in Stafford, and despite being the highest risk of the six-month period, 100% of orders are now being distributed from the site.
However, to get to this point availability did dwindle in some stores during the second quarter, leading to sales dropping by around 3% on a like-for-like basis.
Earlier this year, the UK's Competition and Markets Authority (CMA) launched a probe into the veterinary industry and at first, because it owns brands Vets for Pets and Companion Care Vets, it appeared that the group could be impacted.
However, Pets at Home confirmed it does not expect to suffer any impact on its growth strategies from the CMA investigation and instead said it saw a jump in customers with older pets switching over to its services in the last few months.
Lyssa McGowan, chief executive officer, said: “This period has not been without challenges, but we have been able to manage these well and are on track to finish FY24 with a refreshed, modernised infrastructure, fit to deliver growth for many years to come.”
Pets at Home shares opened flat on Tuesday at 286p.