Record Revenue but Pandemic Affects Profits and In-Store Sales

  • Pets at Home reaches £1bn in annual revenue for the first time
  • Like-for-like revenue up by 9% and retail like-for-like revenue up by 9.4%
  • Ominchannel revenue increased by 27.8%
  • Underlying profit before tax rose 11% to £99.5m
  • Resilient balance sheet with significant liquidity headroom
  • Exceptional demand in Q4 unwound in Q1 due to lockdown
  • Online sales unable to fully offset reduced in-store sales
  • Covid-19 impacting profits, margins and cashflow in the first half of 2021

Pets at Home has achieved its first £1bn annual revenue, a 10.2% increase to £1,058.8m, with like-for-like sales up 9%. Retail like-for-like sales rose by 9.4%, marking a 15% two-year growth. The fourth quarter’s exceptional performance led to profits ahead of expectations, but the nationwide lockdown impacted in-store sales and online sales couldn’t fully compensate. Omnichannel revenue increased 27.8% (83% on a two-year basis). Underlying profit before tax rose 11% to £99.5m. The company has a resilient balance sheet with £162m total liquidity and an extra £100m facility from lenders. However, the pandemic’s effects on profits, margins, and cashflow are expected to impact first-half 2021 profits.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Pets at Home’s financial performance, including revenue growth, profitability, and the impact of COVID-19 on their business. It also includes a statement from the CEO, Peter Pritchard, which adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about Pets at Home’s financial performance and the impact of COVID-19 on their business, but it lacks in-depth analysis or exploration of long-term trends or possibilities. It also does not hold powerful people accountable or explore consequences for those bearing risks.
Financial Relevance: Yes
Financial Markets Impacted: Pets at Home’s financial performance impacts its stock value and may affect the retail sector
Financial Rating Justification: The article discusses Pets at Home’s financial results, including revenue growth, profit before tax, and the impact of COVID-19 on their business. This information is relevant to investors and can influence the company’s stock price and the broader retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article mentions the impact of COVID-19 pandemic on the retailer’s profits, margins and cashflow but does not describe an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk