Pets At Home, a leading pet retailer and veterinary service provider, has announced a rise in revenue for the 16 weeks ending July 18th. The company reported a total group revenue of £441.1m, representing a 1% increase from the same period last year.
The company’s vet division experienced significant growth, with revenue increasing by over 17%. However, its retail revenue saw a slight decline of 0.8%, which was in line with expectations.
This news comes as the Competition and Markets Authority (CMA) continues its investigation into the UK’s veterinary industry. The CMA has expressed concerns that pet owners may be paying too much for medicines and prescriptions. Its investigation also includes an examination of the increase in ownership of vet practices by large corporate groups, which now make up 60% of the market compared to just 10% in 2013.
In its trading statement, Pets At Home did not mention the ongoing probe. However, the company has previously expressed disappointment over the investigation. The CMA has also raised concerns about potential decreased competition in the market, as pet owners tend to choose a vet practice based on location and convenience rather than pricing.
Despite the investigation, Pets At Home’s Chief Executive Lyssa McGowan expressed satisfaction with the company’s results, stating that their growth improved throughout the quarter. She attributed this growth to investments in logistics, stores, and digital platforms, as well as the success of their unique joint venture veterinary practices, which have seen an increase in visits and new customers.
In response to the CMA’s investigation, a spokesperson for Pets At Home emphasized the company’s distinct business model, where individual veterinary practices are led by entrepreneurial vets who prioritize the well-being of pets. They also asserted that pricing is set at a local level to ensure fair charges for customers.
The company has pledged to fully cooperate with the CMA to ensure a thorough understanding of their business model, which they believe is pro-competitive. The CMA is expected to announce a provisional decision on the investigation, including any potential actions, in April or May of next year.
