Pets at Home Group underlying profit pre-tax profit fell 19.3% to £47.8m in its first half due to investments in a new distribution centre and its rebrand.
However, the specialist pet retailer maintained its guidance for the year.
Sales rose 6.5% to £774.2m for the 28-week period to 12 October, with like-for-likes up 6.2%.
The positive run continued in the first weeks of its third quarter with retail like-for-likes up around 4% as Christmas nears.
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The company said it has made “significant progress” in its digital offering and increased vet capacity to attract pet owners.
“Importantly, the market backdrop against which we are implementing our strategy remains robust with industry growth supported by well-established, structural growth trends,” it said.
Pets at Home chief executive Lyssa McGowan said the half had been “a critical period in laying the foundations of our platform for future growth”.
“This was the period of peak activity when we relaunched our brand, launched our new DC, built our new digital platform, and made progress expanding and improving our physical assets across retail and vets.
“This period has not been without challenges, but we have been able to manage these well and are on track to finish FY24 with a refreshed, modernised infrastructure, fit to deliver growth for many years to come.
“As we stand today, past our point of peak investment, the business is in great shape with good operational and strategic momentum. We look to the future with confidence that we can deliver our plan, as set out in May, to build the world’s best pet care platform.”
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