Pets at Home Group (PETS) H2 2026 earnings summary

Executive summary

• Retail business saw 4% volume growth in Q4, with strong transaction growth and a positive start to the new financial year.

• Maintains market leadership in the UK pet care sector with £1.3bn retail and £0.7bn vet sales, serving 7.4m active members and operating 460 pet care centres and 455 vet practices.

• Over 12% price investment was made in around 1,000 products, driving customer response and supporting volume growth.

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

• Insurance business set to launch in 2026, targeting a £2bn market opportunity with FCA approval and technology integration nearly complete.

Financial highlights

• Group consumer revenue reached £1.98bn, up 1% year-over-year; underlying PBT was £92.8m, down 30% year-over-year.

• Vet Group revenue grew 5% to £688m, while retail revenue declined 1% to £1.29bn.

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

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

• Retail business is expected to return to mid-single digit revenue growth in the current period.

Outlook and guidance

• Guidance for FY 2027 reconfirmed, with expectations of market share gains and improved profitability.

• 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 50% dividend payout ratio.

• Management is comfortable with consensus estimates and aims to outperform the midpoint if possible.

• No significant negative impact expected from Middle East conflict; supply continuity and cost risks are hedged.