Pets at Home announced its retail volumes returned to growth in the third quarter. Despite a 1.1% dip in like-for-like revenue, this marked an improvement from previous declines. The UK pet care group also reiterated its full-year profit forecast, aligning with the £93 million consensus. The veterinary business saw continued expansion, up 5% in the quarter.

This positive shift comes as the company invests in pricing, with food prices about 6% lower year-on-year. Jefferies suggests this may have reduced sales by about three percentage points. The improvements are ahead of an easier comparison in Q4. The company is actively pursuing turnaround initiatives and cost savings, with a new CEO starting in March.

The veterinary division's consistent growth is key, representing approximately 90% of the group's pre-tax profit. The company plans to open 10 new practices and 15 extensions this financial year. Investors will be watching the ongoing cost-saving measures and the impact of the new CEO, James Bailey, on the company's performance.

Looking ahead, market analysts will be observing the full-year results for Pets at Home. The focus will be on whether the volume recovery is sustainable, particularly amidst ongoing price investments. The performance of the veterinary segment will also be a key indicator for the company's overall financial health and future growth.