REG - Pets at Home Grp - Q1 FY25 Trading Statement

Pets at HomeAnnouncement

01/08/2024 07:00

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RNS Number : 6852Y  Pets At Home Group Plc  01 August 2024

 

 

 

FOR IMMEDIATE RELEASE, 01 AUGUST 2024

Pets at Home Group Plc: Q1 FY25 Trading Statement

for the 16 week period to 18 July 2024

A resilient start to the year; full year guidance maintained

 

Financial Highlights

 ●    Consumer revenue(1) up 1.5% to £576.6m supported by growing average customer
      spend and growth in active Pets Club members, up 3% YoY to 8.0m, offsetting
      the impacts of market normalization, as the pet population stabilizes, and
      slowing inflation.
 ●    Total Group revenue growth of 1.0% to £441.1m, with Group like-for-like(2)
      (LFL) revenue up 0.5%.
      ᵒ                                        Vet Group revenue remain strong growing 17.1%, and LFL(2) of 13.3%, driven by
                                               higher average spend and growth in visits, supported by improved clinical
                                               capacity and continued strong new customer sign-ups.
      ᵒ                                        Retail revenue down -0.8% as expected, with LFL(2) down -0.8%, with a stronger
                                               performance through the second half of Q1 driven by consistent market share
                                               gains in key categories confirming that our offer continues to resonate well
                                               with consumers. Category trends were broadly consistent with previous
                                               quarters.

 

Business Highlights

 ●    Our digital platform is seeing a positive response from customers, and
      improved conversion rates show the platform can deliver on our ambitions,
      leaving us optimistic for the future. We continue to build improved
      functionality into the platform and build momentum with consumers.
 ●    We continue to grow our subscriptions revenues, now generating 11% of consumer
      revenue. Pet care plans benefited from strong customer acquisition in Vets
      during the quarter, while subscriptions in our Retail business are starting to
      benefit from the improved functionality offered by our new digital platform.
 ●    Our investment program is on track. Year to date we have opened 2 new pet care
      centres and completed 5 refits including 2 vet extensions. Our Stafford DC
      continues to support very strong levels of availability and we are on track to
      transition our online operations this year.
 ●    We continue to win vet talent, with clinical FTE headcount up 6% YoY. The
      benefits of our unique JV model continue to attract vets and vet nurses to
      join our practices attracted by the independence, clinical freedom and
      significant development opportunities we offer.
 ●    We are progressing our sustainability agenda, and in the first quarter we have
      raised over £1.3m for pet charities, fed over 700k pets for a day through our
      pet food bank partnership with Blue Cross, and donated over 650 hours to local
      communities through our Better World Pledge volunteering program.

 

Current trading and outlook

 ●    We make no change to guidance for FY25 and remain comfortable with current
      analyst consensus for Group underlying PBT of £144m*. Our H1/H2 profit shape
      is expected to broadly in line with prior year.
 ●    Sales trends remain in line with expectations, with LFLs expected to improve
      in future quarters as comparatives ease, we see the benefits of continued
      strong availability and the benefits of the new platform start to come
      through.
 ●    Gross margins were resilient through Q1, helped by favorable product mix
      including own label strength and good performance in some accessories
      categories such as Health & Wellbeing.
 ●    Our balance sheet remains robust and we are progressing our £25m share
      buyback.

 

Lyssa McGowan, Chief Executive Officer, commented:

We are pleased to have delivered a resilient Q1, with our growth improving
through the quarter as our offer continued to resonate well with UK pet
owners. 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.

As ever it is our people, and their unrivalled expertise, that continue to
drive our business. I would like to thank our colleagues and vet partners for
their ongoing passion and dedication to creating a better world for pets and
the people that love them.

 

Key Performance Indicators

 Strategic KPIs                                 FY25 Q1  FY24 Q1  YoY
 Number of active Pets Club members(3) (m)      8.0m     7.8m(7)  3%
 Average Consumer Value(4) (£)                  176      172      2%
 % of Revenue from Subscriptions(5) (%)         10.5%    9.6%     9%
 Clinical FTE Headcount(6) (k)                  3.3k     3.1k     6%

 

 1.  Consumer revenue includes total revenue across the Group including consumer
     sales made by Joint Venture vet practices, and therefore differs to the fee
     income recognised within Vet Group statutory revenue.
 2.  Like-for-like revenue comprises total revenue in a financial period compared
     to revenue achieved in a prior period, for stores, omnichannel operations,
     grooming salons, and vet practices that have been trading for 52 weeks or
     more.
 3.  Number of active Pets Club members who transacted across the group in the last
     365 days prior to the end of the reporting period.
 4.  The average spend of active Pets Club members across the group over the last
     365 days based on consumer revenue as defined above, rather than statutory
     revenue.
 5.  Subscription revenue includes our Flea & Worm, Easy Repeat, Complete Care
     and Vac4Life plans and is divided by Group consumer revenue.
 6.  Full time equivalent number of all vets and nurses working across the group,
     based on standard working hours.
 7.  Restated from 7.7m reported in Q1 last year

 

Our next scheduled update will be our FY25 interim results announcement on 27
November 2024.

 

Investor Relations Enquiries

 Pets at Home Group Plc:
 Andrew Porteous, Director of Investor Relations           +44 (0) 7740 361 849
 Chris Ridgway, Head of Investor Relations                 +44 (0) 7788 783 925

 

Media Enquiries

 Pets at Home Group Plc:
 Natalie Cullington, Head of Communications  +44 (0) 7974 594 701
 Citigate Dewe Rogerson:
 Angharad Couch                              +44 (0) 7507 643 004

 

About Pets at Home

Pets at Home Group Plc is the UK's leading pet care business, providing pets and their owners with the very best advice, products
and care. Pet products are available online or from over 450 pet care centres, many of which also have vet practices and grooming
salons. The Group also operates a leading small animal veterinary business, with over 440 veterinary general practices located both

in our pet care centres and in standalone locations. For more information
visit: http://petsathomeplc.com/ (http://petsathomeplc.com/)

Disclaimer

This trading statement does not constitute an invitation to underwrite,
subscribe for, or otherwise acquire or dispose of any Pets at Home Group Plc
shares or other securities nor should it form the basis of or be relied on in
connection with any contract or commitment whatsoever. It does not constitute
a recommendation regarding any securities. Past performance, including the
price at which the Company's securities have been bought or sold in the past,
is no guide to future performance and persons needing advice should consult an
independent financial adviser. Certain statements in this trading statement
constitute forward-looking statements. Any statement in this document that is
not a statement of historical fact including, without limitation, those
regarding the Company's future plans and expectations, operations, financial
performance, financial condition and business is a forward-looking statement.
Such forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially. These risks and uncertainties
include, among other factors, changing economic, financial, business or other
market conditions. These and other factors could adversely affect the outcome
and financial effects of the plans and events described in this statement. As
a result you are cautioned not to place reliance on such forward-looking
statements. Nothing in this statement should be construed as a profit
forecast.

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