The Pets at Home Group Plc Board has recommended a final dividend of 8.3 pence per share, taking the total dividend for the year to 12.8 pence per share. Dividends have been maintained in the year despite the YoY decline in EPS, resulting in a payout ratio of 61%. In the years ahead they will gradually move their payout ratio closer to the 50% stated in their capital allocation policy. The final dividend will be payable on 16 July 2024 to shareholders on the register at the close of trading on 7 June 2024.
Other financial highlights include:
•Consumer revenue# grew 6.9%, in line with their medium-term ambition, to £1.9bn. Underlying consumer demand was resilient with structural trends underpinning sustained market growth.
•Total Group revenue growth of 5.2% to £1.5bn, with Group like-for-like (LFL) revenue up 5.1%.
•Vet Group revenue grew 16.8%, and LFL up 16.5%, with record sales supported by higher Average Transaction Value, mix and visits as they have increased clinical capacity.
•Retail revenue grew 4.0%, and LFL# up 4.1%. Q4 LFL was in line with expectations with continued volume growth and slowing inflation in food, and softer performance within accessories.
•Underlying PBT of £132.0m is down 3.2% YoY as guided, impacted by short-term availability issues as they transitioned to their new DC and weaker performance of discretionary accessories. Returning accessories to growth is a key focus in the year ahead and they have a strong plan to do so.
•Statutory PBT was £105.7m, down 13.7% reflecting the decline in underlying PBT and non-underlying costs of £26.3m, mostly associated with their DC transition and their support office consolidation.
•Underlying basic EPS was 20.7p, down 9.0%, and statutory basic EPS was 16.6p, down 19.0%.
•Free cash flow down 29.7% to £69.0m reflecting YoY profit shape and the phasing of investments.
•Balance sheet remains robust with net cash of £8.8m (before lease liabilities of £380.9m). Cash and cash equivalents were £57.1m at the end of the year.
•£25m share buyback announced for FY25, having completed £100m in buybacks over last 2 years.
