Retailer and vet Pets at Home Group PLC (LON:PETS) said it expects profit for the full year to be a cat’s whisker above current market expectations after making a strong start to its trading year.
Continuing the strong revenue from the end of its last financial year, revenue for the FTSE 250 group of £303.4mln for the 16 weeks to 18 July was up 10% on the equivalent period last year, with like-for-like sales up 8%.
READ: Pets at Home full year results beat expectations despite profit plunge
Retail LFL sales rose 9% to £266.4mln thanks to a 36% surge in omnichannel retail sales, while sales from the veterinary arm jumped 19% to £37mln, with LFL sales up 6%.
Guidance for full-year underlying profit was nudged up thanks to good growth in retail transactions and cash, particularly in food and omnichannel where strong growth has more than offset adverse margin mix.
This was further boosted by the underlying performance of the Vet Group in line with management plans, helped by the financial impact of buying out a number of joint venture vet practices and closure of others, putting the recalibration “on track”.
Chief executive Peter Pritchard hailed the strong sales performance across the business, particularly retail’s impressive 14% LFL gain on a two year basis, adding that the Vet Group buy-outs had been “carefully executed”.
“We have the right foundations in place to accelerate the maturity of our vet practices in a sustainable way, delivering cashflow benefits to both joint venture partners and Pets at Home.
“At this early stage in the year, and with ongoing uncertainty across the wider retail sector, we remain cautiously optimistic and focused on delivering our pet care strategy."
Broker Liberum said the performance of retail was “outstanding” considering the general retail market backdrop.
The shares have risen 85% this year and edged up again to 216p.
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