Pets At Home Group Plc · LSE:PETS
Pets At Home — FY2025 Earnings Presentation
41 slides from Pets At Home's earnings presentation, May 28, 2025
Slide 1: Pets at Home Preliminary Results FY25
Pets at Home Preliminary Results FY25 28 May 2025 1
Slide 2: Key messages
Key messages 1. Our business has undergone a profound transformation. 2. Petcare remains an attractive market, with long term structural growth drivers. 3. Our differentiated platform enables us to win in an increasingly omnichannel world. 4. Our Vets business is unique with multiple, proven growth
Slide 3: A year of strategic progress and transformation
A year of strategic progress and transformation Pets Club members Average Consumer Subscription increased 5% Value down 2% to revenues up 8.2m £175 +30% Another year of Grew vet talent again Expanded Vets double-digit vet growth footprint +13% +6% 3 new Practices 15 extensions Group FCF £84m Childre
Slide 4: Our business has been transformed
Our business has been transformed Distribution Network Single Unified Brand New Digital & Data Platform Optimised 9% increase in brand 35% growth in Easy Repeat Delivering structurally higher consideration subscriptions availability 4
Slide 5: Delivering against a clear strategic vision
Delivering against a clear strategic vision A powerful purpose To create a better world for pets and the people who love them A clear strategic vision To build the world’s best pet care platform Integrated Omnichannel Consumer-centric a unified blend of products, services and advice seamlessly conne
Slide 6: Our strategy will reward shareholders
Our strategy will reward shareholders Mid-single digit Excess cash Profits growing FCF conversion consumer returned to ahead of sales of PAT at c90% revenue growth shareholders Winning market Driving efficiency Delivering cash A clear and share through vets and operating profit growth on consistent
Slide 7: UK’s leading complete Petcare provider
UK’s leading complete Petcare provider 7
Slide 8: Petcare remains an attractive market
Petcare remains an attractive market Structural trends support long term market growth FY25 was temporarily below trend +9.0% CAGR Normalisation (post-boom) +4.7% CAGR +8.0% CAGR Deflation Subdued consumer confidence Total UK pet spend Source: ONS Household Spending Driven by premiumisation and huma
Slide 9: We are the clear market leader
We are the clear market leader Transformed digital & data capability Improved subscriptions functionality Leading reach Unique, sector leading vets Unrivalled expertise and knowhow Value added adjacent services As the market returns to growth our platform will enable us to outperform and win share 9
Slide 10: Winning in an increasingly omnichannel pet sector
Winning in an increasingly omnichannel pet sector 10
Slide 11: Growing share of wallet is our greatest opportunity
Growing share of wallet is our greatest opportunity Consumer ACV opportunity is unlocked by Our platform is designed to drive share of wallet increasing share of wallet via known levers Consumer ACV by Centile ACV Uplift of Selected Drivers Fanatic ACV c£935 Buy Own Brand Vet Client Average Pet Subs
Slide 12: Our revenues are increasingly sticky and predictable
Our revenues are increasingly sticky and predictable …and will accelerate through Our consumer spend is sticky and predictable… focused growth in key areas ACV by year of joining Pets Club 2025 2024 Subscriptions (Care Plans and Easy Repeat) 2023 2022 2021 2020 2019 Insurance Vets FY19 FY20 FY21 FY2
Slide 13: Our new digital and data platform is delivering
Our new digital and data platform is delivering • Significantly improved experience and functionality • Higher consumer satisfaction and increased share of wallet • Stable, experienced, inhouse squads introducing new features daily • Seamlessly integrating data to drive personalisation • Sales momen
Slide 14: We have radically improved Easy Repeat with our new technology
We have radically improved Easy Repeat with our new technology Landing Page Product Details Checkout Add to order Relevant content, offers and product recommendations 14
Slide 15: New Easy Repeat proposition is driving significant omnichannel uplifts
New Easy Repeat proposition is driving significant omnichannel uplifts Online launch Autumn 2024 In-Store Launch April 2025 Uplift in +35% subscribers Consumer +50% Frequency Transaction Value +2% > 1,000 Over 90% 75% 2-4 weekly Customer Value +53% signups per day Click & Collect frequency 4% of our
Slide 16: Our Pet Care Centres are core to our omnichannel strategy
Our Pet Care Centres are core to our omnichannel strategy Pet Care Centres provide a halo to online Concept stores hugely successful and now rolling through our performance refit programme Online catchment (Brighton PCC) vs Total online (Indexed) 2021-Q3 2021-Q4 2022-Q1 2022-Q2 OPENING QUARTER 2022-
Slide 17: Insurance is a £2bn vertical where we can create value
Insurance is a £2bn vertical where we can create consumer and shareholder value Market Opportunity Clear plan, fully resourced Insurance Policy / PBT Projection 4% CAGR 7% CAGR FY26 FY27 FY28 FY29 FY30 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 # of policies PBT Source: Mintel
Slide 18: A sector leading veterinary business
A sector leading veterinary business 18
Slide 19: Our Vets business delivered another year of double digit growth
Our Vets business delivered another year of double digit growth We grew practice revenue …driving increased fee income and …which dropped through to FCF given strongly... PBT… the capital light model Vet Consumer Revenue# (£m) Vet Underlying PBT# (£m) Vet FCF (£m) £655m £76m +15% +32% +20% £67m CAGR
Slide 20: Our success is underpinned by our unique JV model
Our success is underpinned by our unique JV model Driving sector-leading outcomes 20
Slide 21: Our differentiated proposition is winning consumers and taking share
Our differentiated proposition is winning consumers and taking share We are winning in highly competitive Consumer satisfaction high and Consumer proposition increasingly well understood markets increasing CMA Analysis of level of competition in Overall Client Satisfaction catchment for each Vets fo
Slide 22: Driving differentiated practice economics translating to value for partners
Driving differentiated practice economics translating to significant value creation for our partners Our practices are more productive than the industry ….with Partners increasingly into dividend territory average… Comparative Economics Proportion of debt free Vets for Pets practices Corporate Compe
Slide 23: Delivering a sustainable, predictable, capital-light profit stream
Delivering a sustainable, predictable, capital-light profit stream for us Our model is fundamentally more attractive than our …and sustained growth has made it a material corporate peers… contributor to the group Corporate Model Consumer Revenue Contribution Margin c80% c30% 33% £655m Revenue and Im
Slide 24: We will leverage proven levers to deliver further growth
We will leverage proven levers to deliver further growth High-single digit growth 40% of growth from 60% of growth from proven levers embedded maturity Consumer Revenue £655m FY25 Embedded Practice Practice Care Plans & Medium Term Maturity Rollout Extension Advanced Capabilities 24
Slide 25: We will accelerate our rollout
We will accelerate our rollout Our practice maturity is highly consistent and predictable… …and we have plenty more opportunity to grow Consumer Revenue by age of Practice Consumer Revenue YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 At least 10 new practices planned for FY26 with
Slide 26: Track record of helping partners grow beyond initial maturity
We have track record of helping our partners grow beyond initial maturity Our practices have consistently grown beyond 10 years…. …accelerated by extensions and advanced capabilities Average consumer revenue by age of practice Consumer Sales Uplift Extensions FY25 20+ yrs +21% 15 15-20 yrs 10-14 yrs
Slide 27: The Vet business is well set for further growth
The Vet business is well set for further growth 1. Our model is unique, delivering a highly compelling consumer proposition and continuing to outperform the market. 2. Our model delivers superior, sector leading returns for our partners and shareholders. 3. Our levers of growth are proven and will a
Slide 28: Financials
Financials 28
Slide 29: We delivered resilient results through a year of transition
We delivered resilient results through a year of transition to our new digital platform Financial KPIs Group Consumer Group Group FCF Revenue Underlying PBT £1.96bn £133m £84m +3% YoY +1% YoY +22% YoY Retail Vet Group Retail Vet Group Retail Vet Group £1.3bn £0.7bn £73m £76m £31m £67m -2% YoY +13% Y
Slide 30: Our Vet business continues to perform very strongly
Our Vet business continues to perform very strongly, helping offset a weaker Retail performance Group Consum er Revenue (£m ) FY25 FY24 YoY % Total 1,961.9 1,909.9 2.7% Group Statutory Revenue (£m ) FY25 FY24 YoY % Total 1,482.1 1,480.2 0.1% LFL (0.4)% 5.1% Vet Group Revenue (£m ) FY25 FY24 YoY % Fe
Slide 31: Group underlying profit of £133m inline with guidance
Group underlying profit of £133m inline with guidance supported by stable margins and strong cost control Group P&L (£m ) FY25 FY24 YoY % Group Statutory Revenue1 1,482.1 1,480.2 0.1% Gross Profit 694.7 691.3 0.5% Gross Margin 46.87% 46.70% 17bps Operating Costs (560.5) (558.5) 0.4% Other Income 14.
Slide 32: We grew FCF by over 20% with a very strong cash result
We grew FCF by over 20% with a very strong cash result from our Vet Business Free cash flow (£m ) FY25 Group Retail Vet Group Central Vs FY24 Underlying PBT 133.0 72.9 75.9 (15.8) 1.0 Interest (net) 15.8 12.8 (0.7) 3.7 Depreciation (underlying) 98.8 94.0 4.3 0.5 Leases 62.2 61.0 1.2 0.0 PPE & amorti
Slide 33: We finished the year in a net cash position
We finished the year in a net cash position after returning over £84m to shareholders Adjusted Net cash (£m ) FY25 FY24 Opening adjusted net cash 8.8 54.7 Free cash flow 83.8 69.0 Equity dividends paid (59.7) (60.7) Share buyback (25.1) (50.3) Acquisitions (2.3) (2.4) Disposals 0.7 (1.5) Closing adj
Slide 34: Capital investment closely aligned to strategic priorities
And our capital investment is closely aligned to our strategic priorities Capital Investment now at Capital Investment Breakdown normalised levels of £50m £m FY25 New Petcare Centres 3.6 4 new Petcare Centres, 1 Relocation, 1 Rebuild 32 Pet care centre refits including 4 major refits in Petcare Cent
Slide 35: Our balanced capital allocation enables growth and shareholder rewards
Our balanced capital allocation enables us to grow the business and reward our shareholders Over £390m returned to Capital Allocation Priorities shareholders in the last 5 years FY26 £25m 1. Investment in the core business New Share Buyback £50m £50m 2. Ordinary Dividend (progressive targeting 50% p
Slide 36: Our Vets Group increasingly underpins predictability of profits and cash flow
Our Vets Group increasingly underpins the predictability of our profits and cash flow Our vet group now contributes more than half our …but our valuation continues to trade in line with Group profits… retail peers Pets at Home PBT contribution PETS vs FTSE 350 Retailers rating over past 5 years 100%
Slide 37: In FY26 we face significant cost headwinds, which drives lower profits
In FY26 we face significant cost headwinds, which drives lower profits Group Underlying PBT (£m) FY25 - FY26 Outlook Cost Inflation Investment Choices £133m £115-125m Underlying PBT FY25 Group (Retail & Vets) External cost Underlying cost Productivity & Marketing Insurance start up Variable pay rebu
Slide 38: We are well positioned to create value for customers and shareholders
We are well positioned to create value for our customers and shareholders 1. The benefits from our two scale transformation projects are ahead of us and the costs and disruption behind us. 2. Our Vet Business has genuine momentum with well proven growth drivers and a long runway of high quality and
Slide 39: A reminder of the key messages
A reminder of the key messages 1. Our business has undergone a profound transformation. 2. Petcare remains an attractive market, with long term structural growth drivers. 3. Our differentiated platform enables us to win in an increasingly omnichannel world. 4. Our Vets business is unique with multip
Slide 40: Q&A
Q&A 40
Slide 41: Our FY26 guidance reflects a steady return to a more normalised Petcare market
Our FY26 guidance reflects a steady return to a more normalised Petcare market Group Underlying PBT £115m - £125m Operating costs <5% increase YoY Non-underlying costs nil Effective Tax Rate 26% Capital investment c£50m Shareholder returns £25m share buyback FY24 Prelim Results 41