CVS Group plc (CVSG) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to this presentation of CVS Group's interim financial results for the six-month period ended 31st of December 2024. I'm Richard Fairman, CEO, and I'm joined by Robin Alfonso, CFA, and Paul Higgs, Chief Veterinary Officer. I am pleased to report that the Group has delivered further growth in both revenue and adjusted EBITDA in the first half, proactively managing the current weaker consumer demand for veterinary care in the UK, whilst focusing on increasing CVS footprint and growth in the Australian veterinary market. We delivered revenue of £341.8 million in the first half and this represents growth of 6.6% over the equivalent period in the previous financial year. Like-for-like sales declined 1.1% in the period, impacted by softer market conditions in the UK, most notably in our online retail and laboratory businesses. Performance across our core veterinary practices division was flat, although we expect to deliver year-on-year growth in this division and across the group in the second half of the year. Adjusted EBITDA was 67.4 million, an increase of 4.5% over the corresponding period in the previous year. Adjusted EBITDA margin was 19.7%, benefiting from acquisitions in Australia, which offset inflationary pressures in the UK. In light of the uncertainty in the UK, due to the ongoing CMA market investigation, we have reprioritised investment activity into Australia, where there is a more stable and supportive regulatory environment around the sector. UK investment in facilities, equipment and technology will be undertaken on an exceptionally disciplined basis with no UK acquisitions. We invested £16.8 million in the first half under this disciplined approach. We completed a further five Australian small animal first opinion practices acquisitions in the fi...