Pets at Home Group PLC (LSE:PETS) said record customer levels drove revenue growth despite macro-factors hitting its first half profits.
Revenue jumped 7.3% in the six months to 13 October to £727.2mln, the company said, with its second quarter performance better than the first.
However, profit before tax (PBT) for the pet supplier fell by 9.3% to £59.2mln, weighed down by increased freight and energy costs, as well as investments in its digital assets, it said.
Despite this, the FTSE 250-listed group kept its full-year PBT guidance unchanged at £131mln.
“In a challenging macro-environment, the pet care industry remains in growth across all channels, and we have continued to acquire new customers at an impressive rate, setting new records for customer numbers in recent months,” said Pets at Home chief executive Lyssa McGowan in the results statement.
Pets at Home noted that the business and wider pet market remains resilient and in growth, with new customer acquisitions strong.
It said that new customer sign-ups for Puppy and Kitten Club are three-fold higher than pre-pandemic levels, while new client registrations at its veterinary business averaged an increase of 8,800 per week, taking its total active client base to 1.7mln.
However, the company said it remains conscious of the macro-economic background and will continue to prioritise price, making pet care “convenient and affordable.”
Pets at Homes said it is offsetting costs, caused by the impact of foreign exchange, energy and national living wage, through self-help levers such as rent reduction and initiatives to improve efficiency.
“I am more convinced that Pets at Home is well positioned to capitalise on an attractive growth opportunity in our structurally growing pet care market, supported by our unique blend of products and services, deeply embedded culture and expert, passionate colleagues, and partners,” McGowan concluded.
An interim dividend of 4.5p was confirmed, a 4.7% year-on-year increase.