Pets At Home takes pet market by storm with £85m in profits

Pets At Home said it expects full-year underlying pre-tax profit of about 85 million pounds ($118.39 million) , up from its early January forecast of at least 77 million pounds .

The pet supplies retailer raised its annual underlying pre-tax profit forecast on Friday , expressing confidence in its full-year performance for 2021. Pets At Home said this was helped by better -than-expected performance across all categories over the past eight weeks . Pets shares also rose 1.4% in early trading .

Pets At Home 's total revenue increased by 18.0% to £302 million in the year to 21 January 2021. This reflects growth in both Pets At Home 's physical stores and online retail .

Retail revenue was up 17.5 per cent, with same- store revenue ( LFL) up the same amount. In stores, LFL was up 12.3 per cent, rising to 19.3 per cent in December. Online sales were up 70.7 per cent, helped by Pets At Home's one-hour "click and collect" service .

Veterinary practice revenue increased 22.1% with LFL up 17.8%. LFL fee revenue from joint venture clinics increased 17.3%, driven by new client enrolments.

Currently, the number of Pets A t Home VIP members has reached 6.2 million, an increase of 12.0%. In the quarter , 26% of these members shopped in stores and online, an increase of 20% over the same period last year. The number of members of the Puppy and Kitten Club increased by 47.2%. It is reported that Puppy and Kitten Club members usually spend 25% more than non-members.

The number of customers who have signed up to Vet Group health plans or online subscriptions has reached 1 million, equivalent to £85 million of recurring sales revenue per year. The increase in customer and membership numbers has led to significant growth in the Group 's product and service sales.

Pet ownership in the UK has soared due to the lockdown , which will have a positive impact on demand in the coming period. Pets At Home said: " Ideally, we will start to see demand shift towards more expensive (and high-margin) food products such as supplements and away from lower-margin products such as cat litter . "

The coronavirus has also accelerated Pets At Home 's shift to online shopping. Pets has invested heavily and improved its digital capabilities, which has been a good move for it , helping its profit growth throughout the year .

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