Pets at Home Faces Profit Dip Amid Retail Challenges, FY26 Expectations Maintained

Pets at Home Group Plc (LON: PETS) released its FY26 interim results, revealing a decline in both revenue and profit before tax (PBT) for the 28-week period ending October 9, 2025.

Despite these setbacks, the company affirms its full-year expectations, signaling confidence in its turnaround strategy.

Group statutory revenue decreased by 1.3% year-over-year to £778.3 million, while statutory PBT plummeted 29.1% to £36.2 million. Basic earnings per share (EPS) also saw a significant drop of 27.7%, landing at 5.7 pence. The interim dividend remains unchanged at 4.7 pence per share.

Group consumer revenue edged up slightly by 0.7% to £1.06 billion, driven primarily by the Vet Group, which experienced a 6.7% increase.

However, the Retail segment suffered a 2.3% decline. Underlying PBT for the Group fell sharply by 33.5% to £36.2 million, with the Retail sector experiencing a steep 84.1% drop in underlying PBT.

The company's free cash flow saw a modest increase of 2.6% to £34.0 million. Adjusted net debt rose to £12.0 million, compared to £8.3 million in the prior year. Underlying basic EPS decreased by 32.1% to 5.7 pence.

The decrease in group underlying PBT is being offset by lower capital expenditure, cash tax, and non-underlying cash costs, along with a working capital timing benefit. The Vet Group's free cash flow increased due to sales growth and a capital-light model, while the Retail segment experienced a decrease due to lower underlying PBT.

Interim Executive Chair Ian Burke stated, “For over 30 years, Pets at Home has been a business with a clear purpose, an established market and loyal customer base, but it's clear that urgent and necessary action is needed to return the Retail business to growth to meet both our own expectations and those of our investors.”