TIDMPETS
RNS Number : 7598M
Pets At Home Group Plc
25 May 2022
FOR IMMEDIATE RELEASE, 25 MAY 2022
Pets at Home Group Plc: FY22 Preliminary Results
for the 53-week period to 31 March 2022
Please click on the associated PDF to view the full
announcement:
http://www.rns-pdf.londonstockexchange.com/rns/7598M_1-2022-5-25.pdf
Record customer acquisition to accelerate future growth in
market share
Financial highlights
53 weeks to 31 March Revenue YoY Growth 1-year 2-year
2022 LFL LFL
Group revenue GBP1,317.8m 15.3% 15.8% 25.9%
Retail revenue GBP1,206.9m 18.5% 15.8% 26.0%
Omnichannel GBP190.9m 18.4% 15.9% 100.0%
Stores GBP984.0m 17.7% 15.0% 18.6%
Vet Group revenue GBP108.4m (12.0)%* 17.1% 24.5%
Fee income GBP69.9m 22.6% 20.9% 26.6%
---------------------- ------------- ----------- ------- -------
* Reflects the disposal of the Specialist Group in the prior
year
-- Total Group revenue growth of 15.3% to GBP1,317.8m with a
further 1.2m million new puppy and kitten customers in the base and
average spend compounding across customer cohorts
-- Growth in Group customer revenue (1) of 16.5% to GBP1,673.8m,
reflecting market share gains across all areas of the business
-- Strong growth in Retail revenue reflecting broad-based growth
across all channels and categories and Vet Group LFL revenue up
17.1%
-- Growth in Group underlying proforma PBT (#) of 65.3% to
GBP144.7m before the change in IAS38 accounting policy (2) , ahead
of consensus expectations, with growth of 54.8% on a 2-year basis;
Growth in Group underlying PBT (#) of 67.9% to GBP130.1m having
taken account of the accounting policy change in relation to IAS38
Intangible Assets. The impact of the policy change reflects our
market leading levels of investment as we continue to digitise the
business and improve our customer proposition
-- Group free cash flow (#) of GBP95.0m, up 40.9% YoY, including
strong cash generation across our First Opinion veterinary
practices
-- Strong balance sheet with net cash (excluding lease
liabilities) of GBP66.0m and intending to launch a 12 month share
buyback programme of up to GBP50m
-- Final dividend per share of 7.5p, an increase of 36% YoY,
reflecting our robust balance sheet and continued confidence in the
prospects of the business, giving a total dividend of 11.8p for the
year, up 48% YoY
-- Continued momentum with sustained growth across our pet care ecosystem:
- The number of active VIPs stands at a record 7.3m having
increased by 1.1m (18%) YoY, or 29% on a 2-year basis
- 27% of all VIPs shopped across more than one channel during the year, up 22% YoY
- The number of Puppy and Kitten Club members grew 36% YoY, with
approximately 23,000 average weekly registrations in the year,
compared to approximately 7,000 two years ago, creating a
significant lifetime value opportunity
- New client registrations across our First Opinion veterinary
practices averaged approximately 9,000 per week, with an active
client base of 1.7m
- The number of pet care plan subscriptions across the Group
grew 23% YoY to 1.5m, generating over GBP120m in annualised
recurring customer revenue (1)
# Alternative Performance Measures (APMs) are defined and
reconciled to IFRS information, where possible, on page 83.
Impact of 53 (rd) Week
FY22 represents a 53-week year, and as such key metrics for FY22
are summarised below on a 52-week basis to aid comparison to the
prior year. All other FY22 metrics presented throughout this
statement are on a 53-week basis.
FY22 FY22 FY21 YoY
change
(53 (52 (52
week) week) week)
----------------------------------------- -------- -------- -------- --------
Group like-for-like revenue growth
(#) 15.8% 8.7%
----------------------------------------- -------- -------- -------- --------
Group revenue (GBPm) 1,317.8 1,293.4 1,142.8 13.2%
----------------------------------------- -------- -------- -------- --------
Group underlying proforma PBT (a,b,c)
(#) (GBPm) 144.7 141.0 87.5 61.1%
----------------------------------------- -------- -------- -------- --------
Group underlying PBT (a,b,c) (#) (GBPm) 130.1 126.4 77.4 63.3%
----------------------------------------- -------- -------- -------- --------
Note all metrics above are presented on an underlying proforma
basis before the change in IAS38 accounting policy (2) .
52-week metrics are calculated by excluding all sales and
attributable costs from the final week of the financial year.
a. FY22 non-underlying credit of GBP0.1m (FY21: GBP0.6m) relates
to the release of a provision held against property leases
allocated against non-underlying gross margin.
b. FY22 non-underlying credit of GBP19.2m (FY21: GBP30.2m)
relates to the profit on disposal of the Specialist Group. FY21
non-underlying charge of GBP1.9m relates to an accounting charge
for minority stakes owned by partners in the Specialist Group,
prior to disposal on 31 December 2020, allocated against
non-underlying operating costs.
c. FY22 non-underlying cost of GBP0.7m relating to loan fees
written off upon refinance of our revolving credit facility,
allocated against non-underlying interest charge.
Current trading and outlook
The pet care market remains robust and in growth, with
registrations into our Puppy & Kitten club continuing well
ahead of pre-pandemic levels and growth in customer spend
maintained across all categories and channels.
Our pet care strategy continues to deliver, the advantages of
our omnichannel model in consistently taking market share by making
pet care affordable, easy, and convenient are clear, and our
ongoing investment into capacity and capability is achieving good
return.
Notwithstanding enduring industry wide inflationary pressures
which we continue to manage proactively, in particular the impact
of raw material, energy, and freight costs, we anticipate that FY23
Group underlying pre-tax profit, excluding the impact of the
accounting policy change in relation to IAS38 Intangible Assets (3)
, will be in line with analyst consensus, which is currently
GBP151m, with a range of GBP146m to GBP157m.
Including the impact of this accounting policy change, we
currently anticipate that FY23 Group underlying pre-tax profit will
be GBP131m, compared to GBP126.4m for FY22 on a 52-week basis.
Our next scheduled update will be our Q1 FY23 release on 5
August 2022.
Peter Pritchard, Group Chief Executive Officer:
Despite another period characterised by significant and evolving
external challenges, our performance this year has been noteworthy,
delivering record sales, profit, and cash flow. I would like to
express my heartfelt thanks to our truly inspiring colleagues and
Partners across the Group for their continued adaptability and
commitment to making Pets at Home bigger, stronger, and more
efficient.
We are well placed to accelerate our growth in market share. The
robust backdrop of the UK pet care market, coupled with our clear
strategic priorities, proven omnichannel model and strong Executive
Team, mean that I hand over leadership of this great business to
Lyssa McGowan with the utmost confidence that Pets at Home will
continue to create value for all stakeholders in both the near and
longer-term.
Notes
1. Customer revenue includes customer sales made by Joint
Venture vet practices and differs to the fee income recognised
within Vet Group revenue.
2. In our Q3 trading statement on 26 January 2022, we
anticipated that full year Group proforma underlying pre-tax profit
would be at least GBP140m prior to the impact of any accounting
policy change in relation to IAS38 Intangible Assets. Excluding the
impact of this accounting policy change our FY22 underlying pre-tax
profit was GBP144.7m and the impact of the accounting policy change
was GBP14.6m. A reconciliation is set out below, with further
detail provided in the CFO review.
Pre AP change AP gross Amortisation Net Post AP Change
saving
FY22 Underlying GBP144.7m GBP(24.0m) GBP9.4m (4) GBP(14.6m) GBP130.1m
pre-tax profit
FY21 Underlying GBP87.5m GBP(15.4m) GBP5.3m GBP(10.1m) GBP77.4m
pre-tax profit
3. In light of the clarification from the IFRS Interpretations
Committee (IFRIC) regarding how companies should account for
configuration and customisation costs relating to cloud computing
arrangements, including Software as a Service (SaaS), which has led
to a change in accounting policy in the application of IAS38
Intangible Assets, we estimate an approximate GBP20m non-cash
impact on full-year underlying PBT in FY23.
4. Proforma amortisation charge had the amounts now expensed
been capitalised
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulations (Regulation (EU)
No.596/2014). For the purposes of MAR and Article 2 of Commission
Implementing Regulation (EU) 2016/1055, this announcement is being
made on behalf of the Company by Roger Tejwani, Director of
Investor Relations & External Communication.
Results webcast
An audio webcast and presentation of these results will be
available on our website (
https://investors.petsathome.com/investors/ ) from 07.00am on 25
May. Management will host a Q&A conference call for analysts
and investors at 10.30am. To join the call in listen-only mode,
please click on the following link ( webcast ). Those wishing to
participate in the Q&A session should email
petsathome-Maitland@maitland.co.uk for call details.
Investor Relations Enquiries
Pets at Home Group Plc:
Roger Tejwani, Director of Investor Relations & External
Communication
+44 (0)1279 927022
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)7974 594 701
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/
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END
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