TIDMPETS
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 LFL(1) 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 FY20 FY21 FY22 FY23
Growth (#*)
-------------- ------ ------- ------------------------------ ------
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 GBP404.7m, with Group
like-for-like(1) (LFL) revenue up 6.0%, reflecting broad-based
growth throughout the quarter.
o Retail revenue increased by 6.6%, and LFL(1) revenue up 5.6%.
All channels remain in growth, with Store LFL(1) of 4.3% and
Omnichannel(2) LFL(1) of 13.5%. Omnichannel participation of Retail
revenue was 16.7% in the quarter, compared to 15.8% for FY22.
o Vet Group revenue increased by 11.2%, with LFL(1) revenue up
8.6%. LFL(1) customer sales(3) across all First Opinion practices
up 4.6% and LFL(1) 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.
o 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.
o 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.
o 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.
o The number of subscription plans(4) across the Group grew 16%
YoY to over 1.5m, generating over GBP135m 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 GBP40.2m
and good liquidity through our recently renewed GBP300m 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 GBP50m 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 GBP131m, with a range of
GBP127m-GBP136m.
- 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 YoY change
Number of active VIPs(5) (m) 7.4m 6.7m 10.7%
--------------------------------------- -----------
Customer revenue(3) from services(6)
(GBPm) 170.6m 161.2m 5.8%
33.1% 33.2% (12)bps
--------------------------------------- -----------
VIP customer revenue(3,7) (GBPm) 1,135.1 981.0 15.7%
--------------------------------------- -------- -------- -----------
Customer revenue(3) per FTE colleague
(GBPk) 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.
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