DAVY VIEW

Q3 organic sales growth of 5.3% was modestly ahead of expectations, supported by strong volume growth. Encouragingly, Pet Food and Care & Wellness both returned to growth. Management reiterated FY26 guidance, with Q4 sales growth expected to moderate against tougher comparatives. However, the adjusted EBITDA margin is now expected to be in the lower half of the 21.5–22.5% range, reflecting increased reinvestment. On first read, the margin outlook is likely to disappoint. We expect limited change to our FY26 group EBITDA forecast, although we see downside risk to our 2027 forecast, which is margin driven.