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Pets at Home Unveils Urgent Retail Turnaround After Half-Year Profit Slump

After a collapse in retail profits, the interim chair outlined a back-to-basics plan covering product, price, execution, cost.

Overview

  • Group underlying profit before tax fell 33.5% to £36.2m for the 28 weeks to 9 October, driven by an 84.1% plunge in retail profit to £3.5m.
  • Retail revenue declined 2.3% to £679.9m as discounting, product mix and lower supplier income pressured margins, while online gains only partly offset weaker store sales.
  • Veterinary services remained robust with revenue up 6.7% to about £376m and underlying profit up 8.3% to roughly £45m, reinforcing the division as the group’s profit engine.
  • Management launched a turnaround centred on product, price, execution and cost, targeting about £20m in overhead reductions and extending a ‘leaner store operating model.’
  • Pets at Home proposed a support-office restructure with a one-off cost of £6m–£8m and continued the CEO search, kept full-year profit guidance at £90m–£100m, and saw shares rise around 4%–5% on the update.