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Highlights

  • PETS group consumer revenue increased 2.7% to GBP 1.96 billion; Vet Group consumer revenue rose 13.0%, Retail declined 1.8%.
  • The company completed digital platform transition and single-site distribution network in FY25.
  • Veterinary business expanded with new joint venture practices and extensions; subscription revenues grew 30%, accounting for 13% of consumer revenue.

Pets at Home Group Plc (LSE:PETS) is a UK pet care company offering retail, veterinary, grooming, and insurance services through stores and digital platforms

The company has released its financial results for the fiscal year 2025 (FY25), showing modest growth and significant developments in its digital infrastructure and veterinary business. The company continues to navigate a challenging market environment marked by subdued consumer confidence and a normalizing pet care sector.

Group consumer revenue increased by 2.7% to GBP 1.96 billion amid a subdued market. The Vet Group recorded a 13.0% rise in consumer revenue, driven by higher visits, average transaction values, and increased Care Plan revenues. In contrast, Retail consumer revenue declined by 1.8%, impacted by softer growth in the UK pet sector, deflationary pressures, and the transition to a new digital platform.

Statutory group revenues were largely flat, up 0.1% to GBP 1.48 billion, with Vet Group revenues growing 16.8% to GBP 175.3 million and Retail revenues falling 1.8% to GBP 1.31 billion. The underlying profit before tax (PBT) for the group edged up 0.7% to GBP 133.0 million, with a slight increase in margin.

The Vet Group’s underlying PBT grew 23.3% to GBP 75.9 million, supported by increased fee income and a stable cost base. Retail underlying PBT declined 16.6% to GBP 72.9 million due to lower revenues, though gross margins remained stable with ongoing cost management. Group statutory PBT was GBP 120.6 million, a 14.1% increase due to reduced non-underlying costs.

Earnings per share (EPS) rose by 1.6% to 21.0p, with underlying profit declines offset by a 3.0% accretion from share buybacks. The total dividend per share increased 1.6% to 13.0p, with the final dividend held at 8.3p. Free cash flow improved 21.5% to GBP 83.8 million, reflecting higher underlying PBT and lower costs.

FY25 saw completion of key strategic initiatives, including the full transition to a new digital platform and the optimization of the distribution network into a single site. These changes are intended to support a more personalized consumer experience and improve operational efficiency across sales channels.

 

Pets Club membership rose 5% to 8.2 million, aided by digital auto-enrolment. Subscription revenues grew 30%, making up 13% of group consumer revenue. The veterinary business added three new JV practices and 15 extensions, with plans for more in FY26. Four new Pet Care Centres opened, and 32 were refitted. Sustainability efforts included carbon foot printing over 250 own-brand products and supporting pet food banks.

For FY26, Pets at Home anticipates ongoing cost pressures and a weak consumer market. It targets revenue growth above the market in veterinary and retail, focusing on digital and subscription investments. Guidance includes underlying PBT of GBP 115-125 million, no non-underlying costs, a 26% tax rate, capital spending under GBP 50 million, and a GBP 25 million share buyback following GBP 125 million in the past three years.