Petz Group delivers resilient 3Q25

Petz Group has reported another quarter of resilient growth, reinforcing its position as Brazil’s leading pet ecosystem. Third-quarter 2025 results show the business sustaining momentum despite an adverse macroeconomic backdrop and heightened sector competition.

Total gross revenue reached 1.1 bn Brazilian reais (205 mio. dollars), a 6.9% year-on-year increase, underpinned by 7.3% growth in B2C sales. Physical retail, a core pillar of the group’s omnichannel strategy, advanced 8.1% year-on-year, while digital sales grew 6.7%, reaching 43.1% of total revenue. Notably, 93% of digital orders were fulfilled via omnichannel services such as pick-up and ship-from-store, evidencing the strategic importance of stores not only for sales density but also for rapid fulfilment – 97% of ship-from-Store orders were delivered within one business day.

Profitability continued to strengthen, with gross margin expanding 70 basis points to 39.6%, supported by a 36% surge in private-label revenue, now representing 12.8% of total product sales. Adjusted EBITDA increased 12.6% to 83.9 mio. Brazilian reais (16 mio. dollars), lifting EBITDA margin to 7.7%. Net income more than doubled to 33.4 mio. Brazilian reais (6.2 mio. dollars), while adjusted net income climbed 40.3% to 31.3 mio. Brazilian reais (5.8 mio. dollars).

Operational discipline remains a key differentiator. Petz generated 140.5 million Brazilian reais (26 mio. dollars) in net cash in 3Q, closing the quarter with a net cash position of 81 mio. Brazilian reais (15.1 mio. dollars) and maintaining its strategic commitment to operate without net debt. CAPEX discipline continued, with investments down 10.8% year-on-year despite selective store upgrades and ongoing investment in digital infrastructure.

Loyalty is proving a major growth engine. Clubz, Petz’s subscription and loyalty platform, doubled its membership sequentially, driving repeat purchase behaviour and higher wallet share. The services segment also accelerated (+13.4% year-on-year), bolstered by veterinary and grooming franchise pilots and the rollout of the Seres Saúde preventative care platform.

Looking ahead, Petz maintains confidence in its pending merger with Cobasi, currently under CADE (Brazil’s administrative council for economic defense) review, with a final ruling expected by mid-December 2025.