Earnings call transcript: CVS Group H2 2026 results show growth, shares fall
CVS Group PLC reported a 5.9% increase in full-year revenue to GBP 712.8 million for the year ending June 30, 2026. Adjusted earnings per share rose 6.9% to 85.6 pence, while adjusted EBITDA grew 5.1% to GBP 141.5 million. However, like-for-like revenue growth slowed to 2.1%, and shares fell 5.07% to $1236, leaving the stock below its 52-week high.
Despite these declines, InvestingPro analysis suggests the company is undervalued based on its Fair Value estimate. Revenue grew across all three divisions, with the laboratories division showing the strongest performance at an 11.5% increase to GBP 35 million and adjusted EBITDA increasing by 25.6%. Online retail revenue also grew 11.1%.
The veterinary practices division, the company's largest unit, posted a 5.2% revenue increase but was impacted by weaker economic conditions and weather-related disruptions. The decline in like-for-like revenue growth came despite improved adjusted EBITDA margin at 19.9%. The company is returning capital through buybacks and dividends and expects to invest about GBP 50 million annually in acquisitions.
Management remains confident in the U.K. and Australia veterinary markets' long-term growth potential.
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