Pets at Home has reported a drop in profits for the full financial year but has maintained its guidance after a “pivotal year” of progress at the retailer.

Pets at Home store interior

Pets at Home has invested in its stores, digital platform and distribution centre

The petcare specialist posted a 3.2% decline in underlying profit before tax for the 52 weeks to March 28, 2024, to reach £132m, which was “as guided”.

Pets at Home attributed the fall in profit to “short-term availability issues”, as the business transitioned to its new warehouse, and a weaker performance across accessories such as beds, collars and leads.

Group revenue for the full year was up 5.2% to £1.5bn, while like-for-like revenue increased by 5.1%.

Retail sales increased 4% during the year, helped by increased volumes and slowing food inflation, while vet group sales jumped 16.8% as the business increased its clinical capacity.

Chief executive Lyssa McGowan called it a “pivotal year” for the retailer as it launched its new digital platform for customers with the app and website now set to “bring together everything owners need to care for their pet”.

The retailer also highlighted its investment in its distribution centre, the opening of new vet clinics and petcare centres, and the refits of some of its sites.

During the year, Pets Club loyalty members increased 2% to reach a total of 7.8 million and subscriptions now generate 10% of its consumer revenue.

Pets at Home maintained its guidance for the 2025 full financial year and said while the external environment has been “subdued”, the sector has “proven resilient”. It expects underlying profit before tax to reach £144m.

The retailer added that it expects to see its previous investments and productivity efforts pay off in the year ahead.

McGowan said: “FY24 has been a pivotal year for the business, having delivered some key building blocks of our platform for long-term growth. I am proud of the progress we have made in the year; we relaunched our brand, opened our new DC, built our new digital platform, made progress in our sustainability agenda and enhanced our physical estate. The business has come together brilliantly to navigate any challenges faced this year, and we have delivered some key milestones of our strategy.

“Our medium-term strategy and financial framework is unchanged and, looking ahead, the fundamental strengths of the business position us well to deliver growth. We hold a leading position in a structurally growing market, with an unrivalled retail store network, and a unique, differentiated and integrated vet business. We know the nation’s pets better than anyone else, with over 10 years of analytical data on 10 million pets, and we now have a best-in-class digital platform and a modern efficient DC.

“Above all else, we have the best colleagues in the industry, who use their passion and expertise to guide customers through their pet care journey every day. All of this positions us incredibly well as we continue to execute our strategy to build the world’s best pet care platform.”