Pet Retailer Thrives Despite Inflation and Energy Crisis
- Pets at Home raises profit outlook after record Q3 consumer revenues
- Consumer revenues up 9% year on year and 30% compared to pre-pandemic levels
- Underlying PBT towards the upper end of £126-136m range
- Group revenue up 8.8% to £347.5m, retail revenue increased by 8%
- Lyssa McGowan: ‘strong growth and attracting new consumers’
- Vet Group adds 8,000 new clients per week with annualised average practice revenues at £1.1m
Pets at Home, a leading pet retailer, has reported record consumer revenues for the 12 weeks ended January 5th, 2023, with a 9% year-on-year increase. This growth is also 30% higher than pre-pandemic levels. The company now expects its underlying profit before tax (PBT) to be towards the upper end of the current consensus range of £126-136m, up from previous guidance of £131m. Pets at Home has also appointed Kathryn Imrie as their new chief consumer officer. The group’s revenue increased by 8.8% to £347.5m and retail revenue rose by 8%. Lyssa McGowan, CEO, stated that the company is experiencing strong sales momentum and attracting new consumers through offering value and service in a challenging inflationary environment. She also mentioned the accessories category’s growth due to their Christmas range. The Vet Group added 8,000 new clients per week with annualised average practice revenues reaching £1.1m. Pets at Home is monitoring the impact of National Living Wage increases and the energy crisis for FY24.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Pets at Home’s financial performance, including revenue growth, profit outlook, and new appointments. It also includes quotes from the CEO that support the company’s claims. However, it lacks some context on the overall pet retail industry and does not mention specific products or services contributing to the growth.
Noise Level: 3
Noise Justification: The article provides relevant information about Pets at Home’s financial performance and growth, as well as its new chief consumer officer appointment. It also mentions the company’s plans for FY24 regarding National Living Wage increases and energy crisis monitoring. 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 stock price and related pet retail stocks may be impacted by this news.
Financial Rating Justification: The article discusses Pets at Home’s financial performance, profit outlook, and growth in consumer revenues, which is relevant to the company’s financial situation. It also mentions the appointment of a new chief consumer officer and future considerations like National Living Wage increases and energy crisis, which could potentially impact the stock price and related pet retail stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There are no extreme events mentioned in this article.
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