REG - Pets at Home Grp - Q1 FY26 Trading Statement

Pets at HomeAnnouncement

Thu 07:01

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RNS Number : 2862T  Pets At Home Group Plc  31 July 2025

 

FOR IMMEDIATE RELEASE, 31 JULY 2025

Pets at Home Group Plc: Q1 FY26 Trading Statement

for the 16 week period to 17 July 2025

Sequential improvement against a subdued market backdrop
Financial Highlights
 •    Consumer revenue(1#) up 0.4% to £591m against a still subdued market
      backdrop.
      ᵒ                                        Vet Group consumer revenue(#) up 7.1%, high-quality growth driven by higher
                                               average transaction values and increased numbers of Care Plans. This continues
                                               a track record of strong growth with consumer revenues c40% higher over a
                                               3-year period.
      ᵒ                                        Retail consumer revenue(#) down 3.0%, with sequential improvement, as we moved
                                               beyond the transition of online sales to Stafford DC, delivered against a
                                               subdued market backdrop with no growth in the pet retail market.
 •    Group statutory revenue declined 1.9% to £435m, with Group like-for-like(2)
      (LFL) revenue down 1.9%.
      ᵒ                                        Vet Group revenue growth of 6.2%, and LFL of 7.8%, reflecting strong consumer
                                               revenue growth and continued progress in converting company-owned practices
                                               into Joint Venture practices.
      ᵒ                                        Retail revenue down 3.0% YoY, with LFL(2) sales down 3.0%.
 •    Gross margins have been resilient to date, whilst maintaining our
      determination to remain price competitive, and cost control remains strong
      across the business as we work to mitigate the previously disclosed £20m
      externally imposed cost headwinds in FY26.

Business Highlights
 •    Customer metrics remain healthy with retail customer satisfaction improving
      further and vet satisfaction maintained at very high levels. Our latest
      external Brand Track measures also saw an increase in customer 'value for
      money' perception.
 •    All our key performance indicators saw progress as we continue to deliver
      against our strategy. We grew Pets Club customers by 1% to 8.1m, with Average
      Customer Value(3) up 1% YoY.
 •    Our digital platform saw improved performance as we exited the transition of
      sales to our Stafford DC, with digital sales returning to double-digit YoY
      growth.
 •    Subscriptions momentum continues, now representing 14.5% of consumer
      revenue(5). Q1 saw Care Plan numbers increase further and saw particularly
      strong growth in Easy Repeat helped by the launch of Easy Repeat In Store.
 •    We launched Pets Club Pricing, giving access to the very best deals across
      1,300 products to our 8.1m Pet Club members.
 •    We continue to grow vet capacity and are on track to meet our target of at
      least 10 openings and 15 extensions in FY26 opening 2 practices and completing
      2 extensions in Q1. We continue to win vet talent, with clinical FTE
      headcount(6) up 5% YoY and welcoming 42 new practice owners in the quarter.
 •    We have implemented the biggest change to our Retail operating model in recent
      history, streamlining and simplifying our management, colleague and pay
      structures. This forms a critical part of our ongoing productivity program for
      FY26, which remains on track.
 •    Insurance continues to progress in line with plans and on track for a 2026
      launch.

Current trading and outlook
 •    At our FY25 results we set our FY26 guidance based around an assumption of 2%
      growth in the pet retail market. While this scenario assumed improving growth
      through the year, the market growth rates experienced through Q1 have been
      below those initial expectations.
 •    Against this subdued market backdrop, we are pleased to have delivered
      sequential improvement in our relative performance and continue to expect that
      we will outperform the retail market over FY26.
 •    We have also made significant progress in our productivity programs, which
      underpin our efforts to mitigate the cost headwinds we face in FY26, and we
      remain committed to our guidance of limiting operating cost growth to 5%.
 •    However, given the subdued retail market growth rates seen to date, we expect
      market growth to now be around 1% and adjust our guidance range to reflect
      this, now expecting underlying PBT(#) in a range of £110-120m. Vets continues
      to perform strongly and is on track to deliver further progress in FY26.
 •    Where we end up in our updated range is mostly dependent on the trajectory of
      retail market growth through the second half of FY26. Reaching the top end of
      guidance would require a step up in market growth, while the bottom end of
      guidance would imply a continuation of current subdued market trends through
      the remainder of the year.
 •    All other guidance is unchanged, and we expect our H1/H2 profit shape is
      expected to be broadly in line with prior years.
 •    Our balance sheet remains robust and we are progressing our £25m share
      buyback having completed c25% in Q1, reducing our share count by c2.7m shares.

Lyssa McGowan, Chief Executive Officer, commented:

We are pleased to have seen momentum in our business build through Q1, against
a subdued market backdrop and uncertain consumer environment. Progress has
been made across all 4 of our strategic metrics in the quarter, including
growing our subscription revenues by over 40%, growing Pets Club members,
increasing average spend and continuing to grow our Vet talent as we continue
building the world's best pet care platform.

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                                       FY26 Q1  FY25 Q1   YoY
 Number of active Pets Club members(4) (m)            8.1      8.0       0.9%
 Average Consumer Value(3) (£)                        180      178(7)    1.2%
 % of Consumer Revenue from Subscriptions(5) (%)      14.5%    10.3%(7)  40.8%
 Clinical FTE Headcount(6) (k)                        3.5      3.3       5.2%

 

 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.  Average consumer value (ACV) is 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.
 4.  Number of active Pets Club members who transacted across the group in the last
     365 days prior to the end of the reporting period.
 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

 

 

 Consumer Revenue YoY Growth(#)  Q1 25   Q2 25  Q3 25   Q4 25   Q1 26
 Retail                          (0.8)%  1.1%   (2.4)%  (5.2)%  (3.0)%
 Vet Group                       13.3%   12.6%  14.2%   11.9%   7.1%
 Group                           3.6%    4.7%   2.3%    0.2%    0.4%

 

 LFL(#) Revenue Growth    Q1 25   Q2 25  Q3 25   Q4 25   Q1 26
 Retail                   (0.8)%  0.9%   (2.8)%  (5.5)%  (3.0)%
 Vet Group                19.5%   15.3%  19.9%   9.6%    7.8%
 Group                    1.0%    2.2%   (1.0)%  (4.0)%  (1.9)%

 

Our next scheduled update will be our FY26 interim results announcement on 26
November 2025.

 

 Investor Relations Enquiries
 Pets at Home Group Plc:

 Andrew Porteous, Director of Investor Relations   +44 (0) 7740 361 849
 Aaron Wood, Head of Investor Relations            +44 (0) 7702 083 154
 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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