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January 26 (Reuters) – Pets at home PETSP.L Wednesday raised its profit outlook for the financial year 2022 and said it was on track for record profit growth as the UK’s largest pet supplies retailer saw sustained demand in all of its activities in the third quarter.
Businesses operating in the pet care market are among the few winners of the pandemic, as shutdowns and work-from-home policies have been accompanied by an increase in pet sales.
“We are firmly on track to deliver a record year of sales and earnings growth,” CEO Peter Pritchard said while expressing confidence in the company’s long-term growth.
The company, which also offers grooming and veterinary services, said it now expects underlying pre-tax profit for the year ending March to be at least £140 million ( $189 million), compared to the average analyst estimate compiled by the company of £135 million. . (https://refini.tv/3G1dWlw)
The group’s year-on-year comparable store sales increased 8.7% in the third quarter ending December, although the growth rate slowed to 30.2% in the first quarter and 13.4% in the second , as pandemic-related restrictions are eased.
The company, like many other retailers, has warned that it is witnessing a number of inflationary pressures in the supply chain and is proactively mitigating them through a series of initiatives targeting rent reductions, supply savings and operational efficiency.
Pets At Home said it was well advanced in its search for a replacement for CEO Pritchard, who announced in November he would step down after more than a decade with the company.
Shares of the company rose more than 2% in early trading and were among the best percentage gains on the FTSE Midcap .FTMC index.
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(Reporting by Chris Peters in Bengaluru; Editing by Shailesh Kuber and Subhranshu Sahu)
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