Pets at Home Group (LSE:PETS) said it is comfortable with consensus expectations for Group underlying PBT of £98m for FY27 after FY26 underlying PBT fell 30.2% to £92.8m in the 52 weeks to 26 March.
Total Group consumer revenue rose 1.0% to £1.98bn while Group statutory revenue fell 0.8% to £1.47bn, with Vet consumer revenue up 5.0% to £688m and Retail consumer revenue down 1.0% to £1.29bn.
Group underlying PBT margin was 6.3% (down c270bps) as Vet Group underlying PBT rose 10.4% to £83.8m with a 47.4% margin and Retail underlying PBT fell 57.8% to £30.8m with a 2.4% margin.
Group statutory PBT was £86.5m, down 28.3% year‑on‑year, after £6.3m of non‑underlying costs relating to completion of support office restructuring versus £12.4m last year.
Free cash flow declined 26.1% to £61.9m, with Vet Group FCF up 9.9% to £74.2m and Retail FCF down to £2.7m, and adjusted net debt was £19.4m, a 0.1x underlying EBITDA leverage ratio.
The board proposes a total dividend of 7.4p per share and will complete a further £50m share buyback in line with its refreshed capital allocation approach.
The Retail Turnaround Plan launched in Q3 delivered sequential improvement through H2, with customer satisfaction up 4pts, Pets Club active members at 7.4m and Pets Club average consumer value up 12% to £195.
The Vet Group accelerated openings with eight new practices and 17 extensions, care plans now cover over 50% of Vet clients, and the group has secured FCA approval for its Pets Insurance product and remains on track to launch in 2026.
"We have the opportunity now to build momentum through profitable volume-led growth in Retail while continuing to execute the proven growth levers of our Vet business and launch our Insurance offering," said James Bailey, Chief Executive Officer.
