Vet operations underpin full-year growth for Pets at Home

(Sharecast News) - Pets at Home reported a 14.1% rise in statutory pre-tax profit to £120.6m for the year ended 27 March on Wednesday, supported by strong performance in its Vet Group and reduced non-underlying costs. Group statutory revenue was broadly flat, up 0.1% to £1.48bn, while consumer revenue across the business rose 2.7% to £1.96bn.

The FTSE 250 company said its Vet Group delivered a standout year, with consumer revenue up 13% and underlying profit before tax jumping 23.3% to £75.9m.

That was reportedly driven by higher customer visits, transaction values, and Care Plan revenues, supported by a stable cost base.

Retail, in contrast, faced headwinds from weak consumer sentiment and transition effects from the launch of a new digital platform, with consumer revenue down 1.8% and underlying profit before tax falling 16.6% to £72.9m.

Free cash flow rose 21.5% to £83.8m, as the group ended the year with adjusted net cash of £6.2m.

Pets at Home declared a total dividend of 13.0p per share, up 1.6%, and announced a £25m share buyback for the 2026 financial year.

Looking ahead, the company said it expected subdued retail conditions to persist, but anticipates continued outperformance from its veterinary business, with over 10 new practices planned for the year, alongside investments in its forthcoming pet insurance venture.

"The past two years have seen a profound transformation at Pets at Home," said chief executive officer Lyssa McGowan.

"We have moved from a business with a strong presence in pet retail and vets, to a true pet care platform.

"We now have a platform that is fit for the future and capable of delivering sustained outperformance and market share gains through delighting consumers and increasingly fulfilling all of their pet care needs."

McGowan said during the transformation, the company had completely replatformed its digital infrastructure, built new capabilities around its data, brand and marketing, and simplified its distribution network to a single distribution centre fulfilling stores, online and subscriptions, all against the backdrop of a normalising pet care market and low consumer confidence.

"In 2025, we also saw another outstanding year of growth in our vets business, fuelled by the commitment and expertise of our partners, supported by our best-in-class scale services, platform benefits and industry knowhow.

"Our practices significantly outperformed a more subdued industry backdrop and delivered this progress despite the ongoing uncertainty of the CMA investigation - further demonstration of the power of our unique joint venture model.

"While the 2026 financial year comes with its own challenges as we digest externally imposed cost headwinds and heightened macro uncertainty, our objective is clear - to deliver outperformance against our underlying markets, across our business."

At 0857 BST, shares in Pets at Home Group were up 2.44% at 268.8p.

Reporting by Josh white for Sharecast.com.