CVS Group PLC (CHIX:CVSGl)
£ 12.12 +0.16 (+1.34%) Market Cap: 866.62 Mil Enterprise Value: 1.15 Bil PE Ratio: 320.01 PB Ratio: 3.33 GF Score: 65/100

Half Year 2025 CVS Group PLC Earnings Call Transcript

Feb 27, 2025 / 09:30AM GMT

Key Points

Positve
  • CVS Group PLC (CVSGF) reported a 6.6% increase in revenue to GBP341.8 million for the first half of the fiscal year.
  • Adjusted EBITDA increased by 4.5% to GBP67.4 million, with a margin of 19.7%, benefiting from acquisitions in Australia.
  • The company has successfully expanded its footprint in the Australian veterinary market, completing five acquisitions and exchanging contracts for six more.
  • CVS Group PLC (CVSGF) maintains a strong operating cash conversion rate of 72%, exceeding their target of 70%.
  • The Healthy Pet Club membership has grown to 507,000 members, indicating strong engagement with preventative health schemes.
Negative
  • Like-for-like sales declined by 1.1%, impacted by softer market conditions in the UK, particularly in online retail and laboratory businesses.
  • Adjusted EPS decreased by 8.3p, affected by increased depreciation, finance expenses, and higher effective tax rates.
  • The UK operations face uncertainty due to the ongoing CMA market investigation, leading to a reprioritization of investments.
  • The online retail business experienced a 6% revenue decline, attributed to economic challenges affecting demand for premium products.
  • Employment costs as a percentage of revenue increased due to wage inflation and investment in staff, impacting overall margins.
Richard Fairman
CVS Group PLC - Chief Executive Officer, Executive Director

Welcome to this presentation of CVS Group's interim financial results for the six-month period ended December 31, 2024. I am Richard Fairman, CEO; and I'm joined by Robin Alfonso, CFO; and Paul Higgs, Chief Veterinary Officer. I am pleased to report that the group has delivered further growth in both revenue and adjusted EBITDA in the first half. Proactively managing the current weaker consumer demand for veterinary care in the UK, whilst focusing on increasing CVS footprint and growth in the Australian veterinary market.

We delivered revenue of GBP341.8 million pounds in the first half, and this represents growth of 6.6% over the equivalent period in the previous financial year. Life alike sales decline 1.1% in the period, impacted by softer market conditions in the UK, most notably in our online retail and laboratory businesses.

Performance across our core veterinary practices division was flat, although we expect to deliver year on year growth in this division and across the group in the second half of the

Already have an account? Log in
Get the full story
Access to All Earning Calls and Stock Analysis
30-Year Financial on one screen
All-in-one Stock Screener with unlimited filters
Customizable Stock Dashboard
Real Time Insider Trading Transactions
8,000+ Institutional investors’ 13F holdings
Powerful Excel Add-in and Google sheets Add-on
All data downloadable
Quick customer support
And much more...
30-Day 100% money back guarantee
You are not charged until the trial ends. Subscription fee may be tax deductible.
Excellent
4.6 out of 5 Trustpilot