The Covid pet boom is over and trading is “subdued” at leading player Pets At Home.
It saw profits for the year down 14% to £106m in a “pivotal year” as its digital platform was launched to customers.
But it thinks this year will be easier and appears unconcerned by a watchdog review into competition in the sector.
Its vet growth strategy is “not threatened” by the CMA probe into vet prices, it says.
The UK cat and dog population boomed from 18 million to 23 million during Covid, and is now steady as people return to offices.
Despite a cost-of-living crisis, demand for pet products was “resilient” as a nation of pet lovers continued to pamper their cats and dogs.
CEO Lyssa McGowan said: “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.”
For investors, there will be another £25 million share buyback, on top of £100 million over the last two years.
McGowan said 2024, “has been a pivotal year for the business, having delivered some key building blocks of our platform for long term growth.”
The final dividend is held at 8.3p.
The company believes its new app and website have “transformed” the shopping and subscription experience.
Jonathan Pritchard at Peel Hunt says the “cloud of the CMA issue” is a problem and that for investors “there are probably better options in the sector right now”. Today the stock rose 1p to 284p which leaves the business valued at £1.3 billion. The shares are down 21% this year however.
Sophie Lund-Yates at Hargreaves Lansdown said: “The group’s not immune to a challenging consumer environment and has been hit hard by the need to keep prices low in order to stoke growth. Convincing pet owners to part with additional cash for money-makers like accessories has been a far more arduous task then when people feel flush with cash.”
