ets at Home and Irn-Bru owner AG Barr are today the latest firms to improve earnings expectations after robust Christmas trading.
The pet products retailer reported like-for-like sales growth of 8.3% in the 12 weeks to January 5 and said trading momentum had continued since then, meaning annual profit is likely to surpass previous expectations of around £131m .
AG Barr, whose other beverage brands include Rubicon and San Benedetto, said an estimated 17% increase in sales for the year through Sunday has left annual earnings above 2022 levels and slightly above current City expectations.
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Pets at Home raises profit forecast
Pets at Home boss Lyssa McGowan described the retailer’s performance as “very pleasing” after annual like-for-like sales growth accelerated to 8.3% in the 12 weeks to January 5.
The company operates 457 stores, many of which have veterinary practices and grooming salons.
Today’s trading update showed a record trading day of over £8 million for the retail side of the business, with all trading categories showing growth during the quarter.
Like-for-like revenue from veterinary services rose 18% as the company’s GP surgeries broke the £10 million weekly turnover barrier for the first time.
Resilient margin performance, “strong grip” on operating costs and robust trading at the start of the current quarter mean the company is on track for the top end of City forecasts of £126m to £136m. This is higher than previous guidance of around £131 million.
Boost for Barr as energy drink acquisition helps sales
Barr’s acquisition of energy drink Boost has caused sales to surge over the past year, the company said today.
The drinks brand, which was acquired in a £20 million deal early December last year, has bolstered the company’s sales, which it said were up 17% to £315 million for the year to January 29.
Irn Bru creator Barr also said earnings would beat analyst expectations.
In a trade update, Barr said, “Our core brands have once again proven their strength and relevance to consumers. The newly acquired Boost and MOMA businesses will provide further room for growth in the development of both their consumer base and customer distribution.”