Another impressive performance at from Pets at Home’s petcare division pushed group sales and profits higher last year, the retailer announced on Wednesday.
At 271.8p per share, the FTSE 250 firm’s shares were last 3.6% higher in midweek trading.
At group level, consumer revenues rose 2.7% in the 12 months to March, to £2 billion, as sales at its veterinary services division soared 13% to £655.1 million.
Pets at Home said “higher visits, average transaction values and significant growth in Care Plan revenues” pushed turnover to record levels.
Underlying pre-tax profit at the vet services unit improved 23.3% year on year, to £75.9 million.
However, the company’s retail division struggled due to “a soft UK consumer backdrop in financial 2025, deflation and normalising levels of new pet ownership,” Pets at Home added.
Consumer revenues and underlying pre-tax profit reversed 1.8% and 16.6% last year, to £1.3 billion and £72.9 million respectively.
The company said that “some transitionary impacts from our digital platform launch” had also impacted retail sales.
Sales were also affected by Pets at Home’s transition to a single distribution centre in Stafford, England.
At group level, underlying pre-tax profit rose 0.7% to £133 million. Statutory pre-tax profit improved 14.1% to £120.6 million.
Free cash flow improved 21.5% year on year, to £83.8 million. Adjusted net cash slipped by £2.6 million, to £6.2 million.
The business raised the full-year dividend 1.6% to 13p, and announced a £25 million share buyback programme.
Profits Tipped To Drop
Chief executive Lyssa McGowan said that “the past two years have seen a profound transformation at Pets at Home. We have moved from a business with a strong presence in pet retail and vets, to a true pet care platform.”
She said that Pets at Home has “completely replatformed our digital infrastructure, built new capabilities around our data, brand & marketing, and simplified our distribution network to a single distribution centre fulfilling stores, online and subscriptions.”
For financial 2026, Pets at Home said it expects underlying pre-tax profit to fall to between £115 million to £125 million. It predicted that “the current market conditions and subdued consumer backdrop to remain in financial 2026.”
Mixed Outlook
Analyst Derren Nathan of Hargreaves Lansdown noted that “the retail outlook remains subdued,” though he added that the company’s veterinary services arm “looks stronger.”
He said that 10 new practice openings are scheduled for this year, and that the group looks “relatively well insulated from the likely findings of the Competition and Markets Authority industry-wide probe.”
The UK’s competition watchdog is investigating claims that the broader vet industry is failing to offer good value for money for consumers.
Wayne Brown, analyst at Panmure Liberum, predicted that the business “will grow faster than the market and while sign-up of vet care plans will moderate, Vets will continue to achieve high rates of growth, just slower than the exceptional past few years.”
He added that “we remain very optimistic on the one-digital platform which should drive improved repeat business and cross-shop and here more marketing spend is budgeted for.”
“Combined with now operating from one single distribution centre, there should be no more disruption in financial 2026,” Brown predicted.
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