**Summary of Pets at Home Group Plc FY26 Interim Results (28 weeks to 9 October 2025):**
**Financial Performance**
**Group Consumer Revenue** Increased by 0.7% to £1.06 billion, driven by a 6.7% rise in Vet Group revenue to £375.9 million, offset by a 2.3% decline in Retail revenue to £679.9 million.
**Statutory Revenue** Declined by 1.3% to £778.3 million, with like-for-like revenue down 1.3%.
**Underlying PBT** Fell by 33.5% to £36.2 million, with Retail underlying PBT down 84.1% to £3.5 million and Vet Group underlying PBT up 8.3% to £44.9 million.
**Free Cash Flow** Increased by 2.6% to £34.0 million, supported by lower capex and working capital benefits.
**Adjusted Net Debt** Rose by 44.6% to £12.0 million, with cash and cash equivalents up to £49.0 million.
**Business Highlights**
**Vet Group** Strong growth driven by average transaction values and Care Plan revenues, with over 50% of clients enrolled. Opened 5 new practices and completed 3 vet extensions in H1.
**Retail** Revenue decline due to weak accessories sales (-5.9%) and food sales (-0.3%), partially offset by strong online performance. Launched Pets Club Pricing to improve value perception.
**Digital Performance** Double-digit sales growth in Q2, with improving LFLs in the half.
**Pets Insurance** On track for a 2026 launch, with progress in team building, infrastructure, and regulatory approval.
**Subscription Growth** 14.6% of Group Consumer revenue now from subscriptions, up from 11.42%, driven by Easy Repeat and Care Plans.
**Restructuring Program** Initiated to reduce Group overheads by £20 million, with non-underlying costs of £6-8 million in FY26 and full benefits in FY27.
**Strategic Progress**
**Omnichannel Platform** Launched new digital and data platform, unified master brand, and optimized distribution network.
**Recurring Revenue** Relaunched Easy Repeat and Care Plans, with significant growth in subscription revenues.
**Vet Expansion** On track for 10 new practice openings and 15 vet extensions in FY26, with clinical FTE headcount up 5.5% YoY.
**Insurance Launch** Progressing towards 2026 launch, accessing a new pet care vertical.
**Challenges and Turnaround Plan**
**Retail Performance** Underperformance due to product issues (Advanced Nutrition, Accessories), infrastructure disruptions, and execution challenges.
**Turnaround Plan** Focus on Product, Price, Execution, and Cost. Resetting Advanced Nutrition ranges, improving accessories through innovation and partnerships, investing in price reductions, and simplifying operations to enhance execution.
**Cost Optimization** Initiated restructuring to reduce overheads by £20 million, with payback in less than 12 months.
**Outlook**
**FY26 Guidance** Maintained underlying PBT guidance of £90-100 million, with Vet Group expected to deliver PBT >£80 million.
**Retail Improvement** Sequential improvement expected in H2, with slightly positive LFL growth as comps ease.
**Insurance Losses** Expected to be around £5 million in FY26 due to tech build phasing.
**CEO Search:** Ongoingwith updates to follow.
**Key Metrics**
**Pets Club Members** Down 2.4% to 7.9 million due to retail customer base decline.
**Average Consumer Value** Increased to £185, driven by Vet customer spend.
**Clinical FTE Headcount** Up 5.5% to 3.7 thousand.
**Conclusion**
Pets at Home Group Plc is addressing Retail challenges through a comprehensive turnaround plan while maintaining strong growth in its Vet Group. The company remains focused on strategic initiatives to drive long-term growth, including digital transformation, subscription growth, and insurance launch. Despite short-term headwinds, the company is confident in its market position and ability to create value for shareholders.
| Metric | FY26 H1 | FY25 H1 | YoY % Change |
|---|---|---|---|
| Group Statutory Revenue (£m) | 778.3 | 789.01 | (1.3%) |
| Group Statutory PBT (£m) | 36.2 | 51.1 | (29.1%) |
| Statutory Basic EPS (p) | 5.7 | 7.9 | (27.7%) |
| Dividend (p) | 4.7 | 4.7 | 0.0% |
| Group Consumer Revenue (£m) | 1,055.8 | 1,048.51 | 0.7% |
| Group Underlying PBT (£m) | 36.2 | 54.5 | (33.5%) |
| Free Cash Flow (£m) | 34.0 | 33.1 | 2.6% |
| Adjusted Net Debt (£m) | (12.0) | (8.3) | 44.6% |
| Underlying Basic EPS (p) | 5.7 | 8.4 | (32.1%) |