Pets at Home Group (PETS) H2 2026 Pre Recorded earnings summary

Executive summary

• Market leader in the U.K. pet care sector with a 20% share, £1.3bn retail and £0.7bn vet sales, serving 7.4m active members and operating 460 pet care centres and 455 vet practices.

• New CEO and CFO bring extensive retail experience, focusing on execution, customer-centricity, and value creation.

• Retail turnaround plan underway, showing early signs of improved sales momentum and customer satisfaction.

• Vet business continues robust growth, leveraging a capital-light JV model with high productivity and profitability.

• Insurance business set to launch in 2026, targeting a £2bn market opportunity, with FCA approval and digital platform in place.

Financial highlights

• Group consumer revenue grew 1% year-over-year to £1.98bn; underlying profit before tax fell by a third to £92.8m.

• Vet revenue rose 5% to £688m; retail revenue declined 1% to £1.29bn.

• Free cash flow was £61.9m, down 26% year-over-year.

• Retail profit dropped 60% to £31m; vet profits and cash generation remained strong.

• Capex investment totaled £46.8m, with £83.9m returned to shareholders.

Outlook and guidance

• FY 2027 expected to deliver profit growth, driven by continued vet strength and retail recovery.

• £20m in support office overhead savings to benefit the bottom line.

• CapEx to focus on the largest-ever retail store reset program, with disciplined ROI.

• FY27 guidance includes consensus underlying PBT, a 26% effective tax rate, and capital investment around £50m.

• Shareholder returns to include a £50m share buyback and a dividend payout ratio of 50%.