Record Customer Numbers and Subscription Growth Drive Sales Upward Trend

  • Pets at Home’s H1 profits decreased by 9.3% due to rising freight and energy costs
  • Total sales increased by 7.3% to £727.2m
  • Like-for-like sales up by 6.4% in Q2, highest growth rate so far
  • Puppy and Kitten club registrations averaged 29,000 per week in Q2, triple pre-pandemic levels
  • Subscription plans grew 11% YoY to 1.6 million, generating £135m in annualized revenue
  • New client registrations up by 8,800 per week, active clients at 1.7 million
  • Consumer spend and demand remain strong amidst macro-economic challenges
  • CEO Lyssa McGowan confident in the company’s position in the pet care market
  • Pets at Home maintains full-year guidance at £131m profit, in line with analyst consensus

Pets at Home has reported a 9.3% drop in underlying profit before tax for the first half of the year, primarily due to increased freight and energy costs. Despite this, total sales rose by 7.3% to £727.2m, driven by record customer numbers and accelerating like-for-like sales. The company’s Puppy and Kitten club registrations averaged 29,000 per week in Q2, triple pre-pandemic levels, while subscription plans grew 11% YoY to 1.6 million, generating over £135m in annualized recurring customer revenue. New client registrations increased by 8,800 per week, reaching an active client base of 1.7 million. CEO Lyssa McGowan remains confident in the company’s position within the pet care market, citing strong consumer spend and demand amidst a challenging macro-economic environment. Pets at Home maintains its full-year guidance at £131m profit, in line with analyst consensus.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Pets at Home’s financial performance, including profit decline, sales growth, and customer trends. It also includes quotes from the CEO that support the company’s outlook on the pet care market.
Noise Level: 3
Noise Justification: The article provides relevant information about Pets at Home’s financial performance and its ability to maintain guidance despite increased costs and a challenging macro-economic environment. It also highlights the growth of its subscription plans and customer base. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: Pets at Home’s profit before tax, total sales, and annualised recurring customer revenue
Financial Rating Justification: The article discusses the financial performance of Pets at Home, including profit, sales, and customer numbers, as well as its guidance for future profits. It also mentions the impact of increased costs on their business.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but the company faced increased freight and energy costs which had an impact on their profitability.

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