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(Alliance News) - Pets at Home Group PLC said on Wednesday it expects an improved annual profit following strong third quarter revenue growth that has sustained into its final quarter.
For the 12 weeks from October 8 to December 31, the company's third quarter, Pets at Home said revenue grew 5.8% to GBP319.4 million from GBP302.0 million a year before.
Pets at Home's financial year ends March 25.
The Cheshire, England-based pet supplies retailer said on a one-year like-for-like basis group revenue was up 8.7% and on a two-year basis it was up 28%.
Retail revenue grew 9.8% in the third quarter on a like-for-like basis while Vet Group revenue grew 4%. Pets at Home said this growth in retail revenue reflected continued strong volume growth across key categories and channels supporting record sell-through of seasonal ranges.
The company has seen strong year-on-year growth in the number of pet care plan subscriptions, with more than 1.4 million plans generating over GBP115 million in annualised recurring customer revenue, Pets at Home explained.
Thanks to the strong continued momentum into its final quarter, Pets At Home now anticipates that financial 2022 underlying pretax profit, excluding any potential impact from accounting changes, will be at least GBP140 million. In financial 2021, underlying pretax profit was GBP87.5 million.
Commenting upon industry-wide inflationary pressures, Pets at Home said it is trying to mitigate cost increases by seeking rent reductions, procurement savings, and operational efficiencies across its business.
Chief Executive Peter Pritchard said: "Our unique, omnichannel pet care strategy continues to deliver strong revenue growth, reflecting continued momentum in customer acquisition, engagement and spend as the benefits of our ongoing investment in capacity and capability really start to deliver."
Shares in Pets at Home were up 3.2% at 431.47 pence on Wednesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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