Pets at Home Group (PETS) Trading Update summary

Financial performance and outlook

• FY25 underlying profit before tax expected at £133m, matching previous guidance.

• Q4 trends aligned with plans despite a volatile UK consumer environment.

• FY26 Group underlying PBT forecasted to decline year-on-year, within £115-125m.

• Retail underlying PBT expected to decline in FY26 due to subdued market and cost pressures.

• Business remains highly cash generative, with continued commitment to ordinary dividend.

Strategic initiatives and operational updates

• Completed transition to a single distribution centre and launched a new digital platform.

• Record Pets Club membership, improved customer satisfaction, and expanded clinical talent.

• Two major strategic programs finalized, positioning retail for growth in FY26.

• Capex to normalize below £50m in FY26, with no expected non-underlying costs.

Market conditions and cost management

• Subdued UK pet retail market growth anticipated to persist into FY26.

• Facing cost increases from NLW/NICS (£18m), packaging regulations (£2m), and marketing (£3m).

• Plans for material cost reduction and productivity to limit operating cost increase to 5%.

• Ability to offset cost inflation depends on sales growth and consumer demand.