Newly floated Pets At Home’s underlying EBITDA jumped 12.4% to £110.7m over the year as it became the UK’s largest vet.
Like-for-likes sales rose 2.4%, which it said was driven by the success of its VIP Club, its strength in advanced nutrition and omnichannel, along with the growth of its Groom Rooms and vet practices. Total sales advanced 11.2% to £665.4m in its year to March 27.
Its underlying EBITDA margin increased 17bps to 16.6%, reflecting the leverage from its services business, which now represents 7.6% of group revenues.
Pets at Home has collared the veterinary market as new openings over the year turned it into the UK’s largest vet practice. Like-for-likes in its vet practices soared 14%.
The retailer has grown its pet vet business to 277 practices through its two fascias, Vets 4 Pets and Companion Care.
The second largest player is CVS with around 250 clinics. The retailer has been putting a stronger emphasis on its service offer and aims to install a clinic in almost every store.
It opened 69 vet clinics in the financial year, launching 47 in-store and 22 as standalone formats.
Pets at Home has added 65 Vets 4 Pets practices to its estate since it bought the business in April last year. It now operates 158 Vets 4 Pets practices and 119 Companion Care.
The retailer aims to expand the business through Vets 4 Pets and wants to more than double its overall pet surgery portfolio to over 700 practices.
Pets at Home chief executive Nick Wood said: “It has been a pivotal year for Pets at Home. Our results demonstrate how we are building on our leading position in the UK pet care market, continuing to innovate and grow the business.
“I am excited with the progress made in our Vets Group, which through the acquisition of Vets4Pets and the opening of 69 new practices, has become the UK’s largest small animal veterinary services provider. None of this would have been possible without the commitment of our outstanding colleagues and I thank them all for their dedication.”
“We are focused on delivering the growth strategy we set out to shareholders at IPO. Whilst the lack of a sustained increase in consumer disposable incomes gives some caution to the outlook, I believe the potential of our retail and services businesses will enable us to deliver our strategy and achieve long-term returns.”
Pets at Home launched on the stock exchange in March with an initial share price of 245p, valuing it at £1.3bn.