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
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Consumer revenue1 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.
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Total Group revenue growth of 1.0%
to £441.1m, with Group like-for-like2 (LFL) revenue up
0.5%.
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Vet Group revenue remain strong
growing 17.1%, and LFL2 of 13.3%, driven by higher
average spend and growth in visits, supported by improved clinical
capacity and continued strong new customer sign-ups.
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ᵒ
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Retail revenue down -0.8% as
expected, with LFL2 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.
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Business Highlights
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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.
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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.
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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.
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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.
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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.
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Current trading and outlook
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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.
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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.
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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.
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Our balance sheet remains robust and
we are progressing our £25m share buyback.
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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
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Strategic KPIs
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FY25 Q1
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FY24 Q1
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YoY
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Number of active Pets Club
members3 (m)
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8.0m
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7.8m7
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3%
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Average Consumer Value4
(£)
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176
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172
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2%
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% of Revenue from
Subscriptions5 (%)
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10.5%
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9.6%
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9%
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Clinical FTE Headcount6
(k)
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3.3k
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3.1k
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6%
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1.
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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.
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2.
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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.
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3.
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Number of active Pets Club members who transacted across the
group in the last 365 days prior to the end of the reporting
period.
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4.
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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.
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5.
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Subscription revenue includes our Flea & Worm, Easy
Repeat, Complete Care and Vac4Life plans and is divided by Group
consumer revenue.
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6.
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Full time equivalent number of all vets and nurses working
across the group, based on standard working
hours.
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7.
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Restated from 7.7m reported in Q1 last year
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Our
next scheduled update will be our FY25 interim results announcement
on 27 November 2024.
Investor Relations Enquiries
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Pets at Home Group Plc:
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Andrew Porteous, Director of
Investor Relations
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+44 (0) 7740 361 849
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Chris Ridgway, Head of Investor
Relations
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+44 (0) 7788 783 925
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Media Enquiries
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Pets at Home Group Plc:
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Natalie Cullington, Head of
Communications
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+44 (0) 7974 594 701
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Citigate Dewe Rogerson:
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Angharad Couch
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+44 (0) 7507 643 004
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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/
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.