Pets at Home Q3 revenue up; FY profit outlook in line

19th Jan 2017 07:22

(ShareCast News) - Pets at Home posted a rise in group revenue for the third quarter as it said the profit outlook for the year remains in line with expectations.For the 12 weeks to 5 January 2017, group revenue was up 4.4% to £203.7m, with group like-for-like revenue growth of 0.1%, reflecting continued strong growth in veterinary services, offset by more subdued trading across the Merchandise business.Merchandise revenues in the period were flat at £177.4m, while services revenues rose 48% to £26.3m, reflecting a 26% jump in Joint Venture vet practice fee income to £9.5m and the contribution from newly acquired specialist referral centres.The company said integration of its new veterinary specialist referral hospitals was progressing well, with best practice and cost benefits already being realised across the business.Chief executive Ian Kellett said: "Vet services yet again performed strongly this quarter, where our strategy of providing a quality service to clients across both primary opinion and specialist referral centres is delivering results, and is a platform for continuing strong growth."In Merchandise, whilst overall sales were softer than anticipated, online grew strongly, reflecting the momentum gained from our investments in seamless shopping. We saw a good performance in our Christmas range, where customers are responding to innovative products at great value for money, which we will reflect in new range launches later this year. We will also focus on delivering best value, starting with a very clear message to customers about the benefits of our high quality, UK produced private label foods, where we will be leveraging our competitive advantage."Pets at Home said its profit outlook for the year remains in line with expectations thanks to the continued investment in its customer offer and ongoing efficiency initiatives.