Pets at Home Group (PETS) H2 2025 earnings summary

Executive summary

• Completed a major two-year transformation, unifying brands, replatforming digital and distribution, and building an integrated omnichannel platform.

• Vet business now represents over half of group profits and cash flow, with a unique JV model driving sector-leading outcomes and double-digit growth.

• Subscriptions and digital engagement are key growth drivers, with Easy Repeat and Care Plans showing strong momentum.

• Omnichannel strategy and subscription models are driving predictable, recurring revenues.

• Petcare market remains attractive with long-term growth drivers, despite FY25 being temporarily below trend.

Financial highlights

• Group consumer revenue grew 2.7% to just under GBP 2 billion year-over-year; Vet Group revenue up 13% to GBP 655 million, Retail revenue down 2%.

• Underlying profits reached GBP 133 million, in line with guidance; Vet Group underlying PBT up 23% to GBP 76 million, Retail underlying PBT down 17% to GBP 31 million.

• Free cash flow increased 22% to GBP 84 million, with GBP 67 million from the vet business.

• Subscription revenues up 30% year-over-year, now 13% of group revenue.

• Active Pets Club members increased 5% year-over-year to 8.2 million; average consumer value per member at GBP 175, down 2%.

Outlook and guidance

• FY 2026 group profit expected in the range of GBP 115 million–GBP 125 million, reflecting cost headwinds and market normalization.

• Operating costs to increase less than 5% year-over-year; capital investment to remain around GBP 50 million.

• Free cash flow conversion of profit after tax expected at 90%.

• GBP 25 million share buyback planned for FY 2026.

• Continued focus on vet group expansion, digital innovation, and subscription growth.