Pets at Home Group PLC (LSE:PETS) reported a decline in first-half profit and launched a four-part turnaround strategy for its retail division, with interim executive chair Ian Burke setting out plans to stabilise performance following the sudden exit of CEO Lyssa McGowan in September.
Retail underlying profit before tax fell 84.1% to £3.5 million in the first half, against a broadly flat market, while consumer revenue edged up 0.7% to £1.06 billion, driven by a 6.7% increase in veterinary sales as retail revenue declined 2.3%.
Burke said his focus since taking over as interim chief executive has been on identifying and addressing the operational challenges in the retail business.
The new retail plan targets four areas: product, price, execution and cost. Product ranges in nutrition and accessories are being reset, £4 million has been invested in price cuts, and a restructuring programme is expected to reduce group overheads by £20 million.
"Stepping into the role as Interim CEO 10 weeks ago, I set out with a clear agenda – to establish a firm grip on the issues facing our retail business, whilst maintaining the positive results we're seeing in areas such as Vets," he said.
He said he had visited over 100 pet care centres and engaged with colleagues at all levels "to establish where the challenges are isolated, resulting in the implementation of a retail turnaround plan with four clear priorities of product, price, execution and cost".
"We are returning to our retailing roots to stabilise and rebuild momentum in our Retail business, and to lay the foundations for a new CEO in due course."
The board, which is carrying out the search for a permanent chief executive, maintained the interim dividend at 4.7p per share and held full-year profit guidance in the range of £90-100 million.