Pets At Home has reported a rise in revenue – amid an ongoing investigation into the vet industry by the competition regulator.
The company achieved total group revenue of £441.1m in the 16 weeks to 18 July, a rise of 1%.
The firm’s vet division saw revenue growth of more than 17%, while its retail revenue slipped by 0.8%, which it said had been expected.
It comes as the Competition and Markets Authority (CMA) investigates the sector, including concerns that pet owners could be paying too much for medicines and prescriptions.
A trading statement by Pets At Home on Thursday made no mention of the probe, but the company has previously expressed “disappointment” over the investigation.
Around 60% of vet practices in the country now belong to large companies, compared to just 10% as recently as 2013.
In an update last month, the regulator said it was also examining whether customers may now be faced with less choice due to a reduction in competition.
It said market research had suggested pet owners tended to choose a general veterinary practice “based on location, convenience, or recommendation, rather than considering prices, in part because they (incorrectly) assume that all practices would charge the same”.
The CMA said it is examining the rapid growth of six main corporate groups, including CVS, IVC, Linnaeus, Medivet and VetPartners, as well as Pets At Home.
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The firm’s chief executive Lyssa McGowan said she was pleased by the “resilient” results, “with our growth improving through the quarter as our offer continued to resonate well with UK pet owners”.
She added: “The benefits of our investments in logistics, stores and digital are coming through, and our unique joint venture vets continued to deliver differentiated performance, growing visits and attracting new customers, driven by our passionate, independent practice owners.”
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Commenting on the CMA investigation, a Pets At Home spokesperson said: “Our model is completely different to corporate-owned vet practices. Whilst our brand is national, our veterinary practices are led by individual entrepreneurial vets who have clinical and operational freedom and work tirelessly to always put pets’ needs first.
“Our business model is pro-competitive with pricing set at a local level to ensure customers are charged fairly.”
They added: “We will continue to fully cooperate with the CMA to ensure our unique and pro-competitive business model of locally-owned vet practices is fully understood.”
The CMA is expected to announce a provisional decision, including potential action it might take as a result of its investigation, in April or May next year.
