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LONDON (Alliance News) - Pets at Home Group PLC on Tuesday reported a rise in annual revenue though profit tumbled, as it looked ahead to the second year of its transformation plan.
The pets products retailer said like-for-like revenue rose 5.5% in the financial year to March 29, as reported sales rose 7.8% to GBP898.9 million. Merchandise revenue rose 6.8% to GBP765.4 million, while Services & Other rose 14% to GBP133.5 million.
The gross margin slipped to 51.7% from 54.2%, as pretax profit tumbled 17% to GBP79.6 million from GBP95.4 million.
Pets At Home shares were up 1.1% at 159.70 pence at the London open Tuesday.
Within divisions, retail like-for-like sales were up 4.6% while Vet sales climbed 15.0%. The retailer maintained its total dividend for the year at 7.5p.
"We again grew our market share in the vet segment and are pleased to say that following our price repositioning work in retail, we have won back share in the food and accessories markets," Pets at Home said.
The year ahead will be the second of the company's three-year financial transition back to "sustainable profit growth".
"In the coming financial year we are targeting like-for-like revenue growth ahead of the market in both Retail and our Vet Group, and a transition back to low single-digit underlying group profit growth," the company said.
In the year ahead, Pets at Home said it expects its gross margin to be down between 75 basis points to 125 basis points, reflecting the annualisation of last year's price investment though mitigated by the growing margin of its vet business.
"We have a bright future. Year one of our three-year strategy has delivered, and as a business we are on a stronger competitive footing to return to sustainable profit growth. But the job isn't done yet. As our new CEO, my plan has a bigger focus on digital, tapping into the vast potential of our customer and pet data, and taking action to ensure our vet business reaches its potential," said Chief Executive Peter Pritchard.
Separately, the company said Independent Non-Executive Director Tessa Green has decided to step down at the company's annual general meeting, to be held on July 12. Green will be succeeded at the meeting by Susan Dawson.
Dawson is a veterinary academic and has been professor and dean of the Institute of Veterinary Science at the University of Liverpool for the last seven years, the company said.
