CVS Group’s like-for-like sales jumped by 17.4% for the full year
The British vet’s like-for-like sales jumped by 17.4% for the full year, as the company opened more clinics with the easing of restrictions.
CVS is now expecting its underlying cash profits (EBITDA) to exceed its upgraded targets, which it confirmed towards the end of April.
The group also said it expects its EBITDA margins to rise above the 18.4% seen at the end of H1, as well as the 16.6% reported last year.
CVS is expecting its full year net debt to be well below its EBITDA, while it is “well placed to pursue further targeted acquisitions”.
Just after lunchtime on Tuesday the CVS Group share price (LON:CVSG) is down by 0.44%.
Sophie Lund-Yates, senior equity analyst at Hargreaves Lansdown commented:
“Pandemic or no pandemic, the UK still needs to care for its pets. While there was some disruption to service because of restrictions, on the whole CVS Group’s vet clinics fared much better than other businesses. As restrictions have allowed clinics to offer a wider range of treatments once more, business has boomed, allowing full year profit expectations to be upgraded yet again. A best-in-show performance is especially welcome given the group’s arguably frothy valuation. CVS Group has reached the point where even a good performance could see the share price wobble, so its results need to stand out from the crowd.”
“CVS Group is also likely being buoyed by the phenomenal rise in pet ownership brought about during lockdowns, which should act as a long-term boon. CVS Group’s revenues are particularly attractive, because once a pet owner registers an animal with a clinic, they’re very likely to be a repeat customer over its lifetime. Recurring revenues are somewhat of a luxury in the world of business, adding a layer of certainty others could only hope for.”
CVS will publish more detailed full year results on 23 September 2021.