Pets at Home Group Plc (LSE) FY26 Interim Results

2025-11-26 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On November 26, 2025, Pets at Home Group Plc announced its interim financial results for the 28-week period ending October 9, 2025. The report highlights a challenging financial landscape, with notable declines in profit metrics despite a modest increase in consumer revenue.

For the first half of FY26, the Group reported statutory revenue of £778.3 million, marking a decrease of 1.3% compared to £789.0 million in FY25. The Group’s statutory profit before tax (PBT) fell significantly by 29.1% to £36.2 million, down from £51.1 million in the previous year. This decline is reflected in the statutory basic earnings per share (EPS), which decreased by 27.7% to 5.7 pence from 7.9 pence in FY25.

In terms of dividends, the interim dividend per share remained stable at 4.7 pence, unchanged from the prior year, indicating a commitment to returning value to shareholders despite the overall decline in profitability.

The Group’s underlying consumer revenue showed a slight increase of 0.7%, reaching £1.06 billion, driven primarily by the Vet Group, which experienced a robust growth of 6.7% to £375.9 million. In contrast, retail consumer revenue fell by 2.3% to £679.9 million, reflecting a challenging retail environment with declining sales in both food and accessories categories. The overall Group’s like-for-like (LFL) revenue also mirrored this trend, posting a decrease of 1.3%.

Underlying PBT for the Group was reported at £36.2 million, a significant decline of 33.5% year-on-year. The underlying basic EPS similarly fell by 32.1% to 5.7 pence. The retail segment experienced a stark drop in underlying PBT, down 84.1% to £3.5 million, while the Vet Group maintained a positive trajectory with an 8.3% increase in underlying PBT to £44.9 million.

Despite the downturn in profits, the Group reported a free cash flow increase of 2.6% to £34.0 million, attributed to lower capital expenditures and improved working capital management. However, the adjusted net debt rose to £12.0 million from £8.3 million in the prior year, indicating a need for careful financial management moving forward.

Looking ahead, Pets at Home Group remains committed to addressing the challenges within its retail operations while capitalizing on the growth potential within its Vet Group. The interim executive chair, Ian Burke, emphasized the urgency of implementing a turnaround plan focused on product, price, execution, and cost management to revitalize the retail segment. The Group’s guidance for FY26 remains unchanged, with expectations of continued focus on operational efficiency and strategic growth initiatives.

In summary, while Pets at Home Group faces significant challenges in its retail business, the positive performance of its Vet Group and stable dividend policy reflect a balanced approach to navigating the current financial landscape.

Original Announcement

Title: FY26 Interim Results
Date: 2025-11-26
Source: London Stock Exchange