Source - LSE Regulatory
RNS Number : 0122V
Pets At Home Group Plc
05 August 2022
 

 

FOR IMMEDIATE RELEASE, 5 AUGUST 2022

Pets at Home Group Plc: Q1 FY23 Trading Statement

Continued strong performance across the business

·      Group LFL1 revenue growth of 6.0%; all channels remaining in growth

·      Continued growth in new customer acquisition and high levels of customer retention across both Retail and Veterinary operations

·      Full-year guidance unchanged

 

Lyssa McGowan, Group Chief Executive Officer, commented:

Our performance has remained strong in the first quarter, underpinned by continued customer growth and high levels of retention. We operate a unique omnichannel model, in a market in structural growth, where the passion and expertise of our colleagues and partners is a key competitive advantage. I would like to thank them for their warm welcome, their continued efforts in helping our record number of customers care for their pets in these challenging times, and their ongoing commitment to building the best pet care business in the world.

The following trading statement covers the 16 week period from 1 April to 21 July 2022, compared to the 16 week period from 26 March to 15 July 2021.

LFL Revenue Growth#*

FY20

FY21

FY22

FY23

Q1

Q1

Q1

Q2

Q3

Q4

Q1

1-year LFL:








Retail

8.2%

0.4%

29.1%

13.8%

9.0%

10.4%

5.6%

Vet Group

6.2%

(9.3)%

44.7%

8.4%

4.0%

12.3%

8.6%

Group

8.0%

(0.7)%

30.2%

13.4%

8.7%

10.5%

6.0%

2-year LFL:

 

 

 

 

 

 

 

Retail

13.8%

8.6%

29.6%

28.1%

28.4%

17.5%

36.4%

Vet Group

19.6%

(4.2)%

25.9%

21.2%

23.3%

27.3%

59.3%

Group

14.4%

7.2%

29.4%

27.6%

28.1%

18.2%

37.9%

#All like-for-like (LFL) revenue figures are based on statutory revenue. Within the Vet Group this includes Joint Venture (JV) fee income and revenue from company managed practices. *To provide a better understanding of underlying performance, the table above shows comparative numbers on both a one and two-year basis

·      Total Group revenue up 7.1% to £404.7m, with Group like-for-like1 (LFL) revenue up 6.0%, reflecting broad-based growth throughout the quarter.

Retail revenue increased by 6.6%, and LFL1 revenue up 5.6%. All channels remain in growth, with Store LFL1 of 4.3% and Omnichannel2 LFL1 of 13.5%. Omnichannel participation of Retail revenue was 16.7% in the quarter, compared to 15.8% for FY22.

Vet Group revenue increased by 11.2%, with LFL1 revenue up 8.6%. LFL1 customer sales3 across all First Opinion practices up 4.6% and LFL1 Joint Venture fee income up 9.6%.

·      Continuing growth in new customers and strong retention of the 1.1m customers acquired last year, combined with the non-discretionary nature of our affordable pet care proposition, supporting ongoing growth in spend.

Sign ups to our Puppy and Kitten Club continued at pace, averaging 25,000 per week, three-fold higher than pre-pandemic, and creating a 12-15 year growth opportunity over the full pet lifetime.

New client registrations across our First Opinion veterinary practices remained strong, averaging over 8,500 per week, growing our active client base to 1.7m.

The number of active VIPs increased 10.7% YoY to a record 7.4m, with our strategic focus on deepening customer relationships resulting in 27% of all VIPs shopping across more than one channel, up 14% YoY.

The number of subscription plans4 across the Group grew 16% YoY to over 1.5m, generating over £135m in annualised recurring customer revenue, representing c8% of Group customer revenue.

·      Good sales to profit conversion as we continue to proactively manage inflationary cost pressures through a planned series of productivity and efficiency initiatives.

·      Our balance sheet remains robust, with net cash of £40.2m and good liquidity through our recently renewed £300m revolving credit facility until 2027. The vast majority of our currency requirements are hedged over the next 12 months, and we are progressing our previously announced £50m share buy back programme.

·    No change to sales and margin outlook, and we continue to expect full-year Group underlying pre-tax profit, including the impact of the IAS38 accounting policy change, to be in line with analyst consensus, which is currently £131m, with a range of £127m-£136m.

 

-     End of announcement    -

 

Notes

It was noted in the FY22 Directors' Remuneration Report that the annual bonus for the CEO and CFO would continue to be based on 60% Group PBT, 20% Group FCF and 20% Pet Care Plans (PCPs). In light of external market conditions, ongoing inflationary cost pressures, and to fully align the Executive Directors with the wider organisation, the Board has taken the decision to upweight the Group PBT and Group FCF measures to 65% and 25% respectively, with PCPs at 10% of the total bonus opporunity. The associated targets for these metrics are considered commercially sensitive and as such will be disclosed in next year's Annual Report.

 

Conference call

A conference call for analysts and investors will be held at 09.00am today. To join the call in listen-only mode, please click on the following link

(https://stream.brrmedia.co.uk/broadcast/62c3e90cfb4bba516c45338b). Those wishing to participate in the Q&A session should email petsathome-Maitland@maitland.co.uk for details. A recording will be available at http://investors.petsathome.

 

Strategic Key Performance Indicators

 Measure

Q1 FY23

Q1 FY22

Number of active VIPs5 (m)

7.4m

6.7m

10.7%

Customer revenue3 from services6 (£m)

170.6m

33.1%

161.2m

33.2%

5.8%

(12)bps

VIP customer revenue3,7 (£m)

1,135.1

981.0

15.7%

Customer revenue3 per FTE colleague (£k)

63.4

63.8

(0.5)%

 

1.     Like-for-like revenue comprises total revenue in a financial period compared to revenue achieved in a prior period, for stores, omnichannel operations, grooming salons, and vet practices that have been trading for 52 weeks or more.

2.     Defined as orders placed online at petsathome.com and in-store using our order-in-store service, plus subscriptions to monthly flea & worm treatments via the 'Subscribe & Save' platform.

3.     Customer revenue includes total revenue across the Group including customer sales made by Joint Venture vet practices, and therefore differs to the fee income recognised within Vet Group revenue.

4.     Defined as total number of plans across Vet Group health plans, or omnichannel subscription platforms Easy Repeat and Subscribe & Save.

5.     Number of VIP loyalty club members who transacted across the group in the last 52 weeks from end of the reporting period.

6.     Defined as customer sales made by JV vet practices, company managed vet practices, grooming services, subscriptions, pet sales and pet insurance commissions.

7.     VIP customer revenue is shown on a rolling 12 month basis rather than a year-to-date basis.

 

Investor Relations Enquiries

Pets at Home Group plc:

Roger Tejwani, Director of Investor Relations & External Communication
+44 (0)7909 234969

Chris Ridgway, Head of Investor Relations
+44 (0)7788 783925

Media Enquiries

Pets at Home Group plc:

Natalie Cullington, Head of Media & Corporate Affairs

+44 (0)7786 927811

 

Maitland/amo: 

Clinton Manning
+44 (0)7711 972662

Joanna Davidson

+44 (0)7827 254567

 

About Pets at Home

Pets at Home Group plc is the UK's leading pet care business; our commitment is to make sure pets and their owners get the very best advice, products and care. Pet products are available online or from our 457 stores, many of which also have vet practices and grooming salons. Pets at Home also operates a UK leading small animal veterinary business, with 443 First Opinion practices located both in our stores and in standalone locations. For more information visit: http://investors.petsathome.com/

 

Disclaimer

This trading statement does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Pets at Home Group plc shares or other securities nor should it form the basis of or be relied on in connection with any contract or commitment whatsoever. It does not constitute a recommendation regarding any securities. Past performance, including the price at which the Company's securities have been bought or sold in the past, is no guide to future performance and persons needing advice should consult an independent financial adviser. Certain statements in this trading statement constitute forward-looking statements. Any statement in this document that is not a statement of historical fact including, without limitation, those regarding the Company's future plans and expectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this statement. As a result you are cautioned not to place reliance on such forward-looking statements. Nothing in this statement should be construed as a profit forecast.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTUSRKRUWUWRAR
Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account.