Pets at Home profits plummet by 12 percent despite sales rise

Pets at Home has announced a drop in pre-tax profits of 12.3 percent despite seeing revenues rise by 5.5 percent.

The financial year of 2019 will be the second year of the company’s financial transition as it looks to obtain sustainable profit growth. Pets at Home reported a two percent growth in the sale of pet products in 2017 and a five percent rise in veterinary sales.

Pets at Home opened 13 superstores, 25 vet practices and 27 grooming salons in the last financial year and said it is now looking to slow down openings.

Peter Pritchard, CEO at Pets at Home said: “The veterinary services market is a very attractive space in which we can grow. We have a profitable business delivering strong returns, achieved largely through our preference to work in partnership with vets who share in the success of their practice.

“The shortage of qualified vets in the UK remains an industry wide problem, so we have chosen to slow our practice rollout to be sure we open practices in quality locations for the best vet partners.

“Our plans to reposition retail are working, more customers are coming back to shop with us, and we are committed to returning the business to profit growth. But it hasn’t been easy. We took decisive action, threw passion and energy into it, and delivered targeted pricing changes to give customers the products that mattered most to them, with the service and value they expect from us.”

Pets at Home recently closed a store in Skegness only a month after announcing its opening.