Q3 FY25 Trading Statement
In brief · summary, not quotable
Q3 revenue growth 0.2% with Vet Group up 21.3%, Retail down 2.4%; full year guidance maintained.
- Consumer revenue £468.0m
- Total Group revenue £361.6m
- Vet Group revenue growth 21.3%
- Retail revenue growth -2.4%
- Active Pets Club members 8.2m (prior 7.8m)
- % Consumer Revenue from Subscriptions 12.7% (prior 10.0%)
Full announcement
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Full year profit guidance maintained
Financial Highlights
- Consumer revenue1 was up by 2.3% to £468.0m. With continued strong growth within the Vet Group offsetting a softer performance within our Retail business.
- Total Q3 Group revenue (0.2%) to £361.6m, with Group like-for-like2 (LFL) revenue (1.0%).
- Vet Group Q3 revenue growth remained strong at 21.3% with LFL of 19.9%. High quality growth continued with Practices seeing double digit revenue growth supported by growth in subscriptions, visits, and average transaction values.
- Retail revenue (2.4%) in Q3 with a (2.8%) LFL. As widely reported across the consumer sector, Q3 saw a more challenging UK consumer backdrop with particularly weak footfall from October. At the same time, our digital performance improved, building momentum through the quarter, with continued strong growth in subscriptions.
Current trading and outlook
- Full year underlying PBT guidance is unchanged. We are on track to deliver modest growth in underlying PBT this year as set out at our H1 results. Against a still subdued consumer backdrop, we have maintained a disciplined gross margin performance, supported by strong Christmas seasonal sell through, and effectively managed our costs.
- The transition of our online orders to Stafford DC is underway. We now expect to exit our Northampton DC by the end of the financial year, completing our network optimisation. As a result, we now expect non-underlying costs of £11m (previously £7m) in FY25 due to the phasing of costs associated with our exit from Northampton and will now incur all outstanding costs associated with our exit in FY25 (previously expected to continue into FY26).
- We expect to finish FY25 with a robust balance sheet after investing £55m in CAPEX and returning £85m to shareholders via ordinary dividends and buybacks.
Key Performance Indicators
| Strategic KPIs | FY25 YTD | FY24 YTD | YoY |
|---|---|---|---|
| Number of active Pets Club members 3 (m) | 8.2m | 7.8m 7 | 5% |
| Average Consumer Value 4 (£) | 175 | 177 | -1% |
| % of Consumer Revenue from Subscriptions 5 (%) | 12.7% | 10.0% | 27% |
| Clinical FTE Headcount 6 (k) | 3.5k | 3.3k | 7% |
| 2. | 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 more than 52 weeks prior to both the current and prior period reporting date | ||
| 7. | Restated from 7.7m reported in Q3 last year |
Our next scheduled update will be a pre-close update at the end of March.
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