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| Date | 1 Aug 2024 |
| Time | 07:00:15 |
| Category | Trading updates |
| ID | 6852Y |
FOR IMMEDIATE RELEASE, 01 AUGUST 2024
for the 16 week period to 18 July 2024
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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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. |
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. |
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. |
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 |
FY24 Q1 |
YoY |
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Number of active Pets Club members3 (m) |
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8.0m |
7.8m7 |
3% |
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Average Consumer Value4 (£) |
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176 |
172 |
2% |
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% of Revenue from Subscriptions5 (%) |
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10.5% |
9.6% |
9% |
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Clinical FTE Headcount6 (k) |
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3.3k |
3.1k |
6% |
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1. |
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. |
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. |
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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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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Subscription revenue includes our Flea & Worm, Easy Repeat, Complete Care and Vac4Life plans and is divided by Group consumer revenue. |
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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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Restated from 7.7m reported in Q1 last year |
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 |
+44 (0) 7740 361 849 |
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Chris Ridgway, Head of Investor Relations |
+44 (0) 7788 783 925 |
Media Enquiries
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Pets at Home Group Plc: |
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Natalie Cullington, Head of Communications |
+44 (0) 7974 594 701 |
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Citigate Dewe Rogerson: |
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Angharad Couch |
+44 (0) 7507 643 004 |
About Pets at Home
in our pet care centres and in standalone locations. For more information visit: http://petsathomeplc.com/
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.