The Directors are pleased to report a resilient financial performance for the year ended 28 June 2024, maintaining profitability despite a challenging trading environment and constrained supply of key product lines.
During the year, the business was significantly impacted by inconsistent supply from several key brand manufacturing partners. These supply issues disrupted the availability of core product ranges and adversely affected the company’s ability to fulfil customer demand at optimal service levels. The inconsistency in factory output, caused by a combination of raw material shortages and operational delays at brand partner facilities, restricted revenue growth opportunities and limited the company’s ability to build momentum in otherwise buoyant demand segments.
Despite these challenges, the company generated a turnover of £34,867,979 (2023: £31,277,677), a relatively stable performance that reflects successful mitigation strategies including the sourcing of substitute products, realignment of promotional activity, and strengthened customer communication. The Directors believe this result demonstrates the business’s resilience and ability to adapt its operations under pressure.
Profit after tax for the year was £177,161 (2023: £576,903), reflecting both the gross margin impact of substituted product lines and a notable increase in financing costs to £386,451 (2023: £150,504), in part driven by higher interest rates on working capital facilities. Nevertheless, operational cash flow remained strong at £840,412 (2023:£873,786), and the company’s ability to self-finance working capital requirements continues to demonstrate its underlying commercial strength.
EBITDA for the year was £967,015 (2023: £1,307,377), and administrative expenses increased slightly to £3,628,844 (2023: £3,431,958), primarily due to strategic investments in acquisitions, commercial resource and technology, as well as additional consultancy and compliance support.
Strategically, the business continued to evolve its model from a traditional wholesale operation to a value-led distribution partnership. This transition has been supported by a newly established internal sales team focused on building deeper commercial relationships with key retail partners. This approach enables the company to deliver merchandising and brand execution support, reinforcing customer loyalty and differentiating Vital Pet Group from passive wholesalers.
The company also progressed in broadening its customer profile and deepening engagement with strategic brand owners. Exclusive distribution partnerships remain a core focus, as does the identification of emerging pet care brands that align with evolving consumer demand. Strengthening supplier relationships and investing in management capability remain central to the company’s forward strategy.
While the independent pet retail channel continues to provide a stable base of business, the company recognises future growth opportunities exist across an increasingly diverse set of retail channels, including digitally native platforms and omnichannel operators.
The Directors acknowledge that trading conditions are likely to remain demanding over the next 12 months, particularly in light of ongoing cost inflation and global supply imbalances. However, they remain confident that the company’s strategic positioning, operational discipline, and strong customer partnerships will continue to support sustainable performance in the year ahead.