By Brazil Stock Guide – Petz (B3: PETZ3) more than doubled its net income in the third quarter to R$33.4 million, while adjusted profit rose 40% year on year to R$31.3 million, supported by efficiency gains, disciplined expansion, and the strong performance of its private-label portfolio.
Growth balanced across channels
Gross revenue reached R$1.09 billion, up 6.9% from a year earlier, driven mainly by 7.3% growth in B2C sales. Brick-and-mortar stores expanded 8.1%, while digital channels grew 6.7%, keeping digital penetration at 43% and omnichannel transactions above 90%. Same-store sales advanced 5.3%, and gross margin improved to 39.6%, thanks to a 36% jump in private-label sales, now representing nearly 13% of total revenue.
Adjusted EBITDA rose 12.6% to R$83.9 million, with margin increasing to 7.7%. The company also reported R$140.5 million in net cash generation, closing the quarter with R$81 million in net cash — a sign of its focus on operational efficiency and capital discipline.
Cash discipline and fewer new stores
Petz maintained a conservative growth approach, opening only three new stores during the quarter and prioritizing profitability over rapid expansion. Capital expenditures totaled R$35 million, 11% lower than a year earlier, as the company invested selectively in digital improvements and store refurbishments.
Chief financial officer Aline Penna highlighted that Petz’s strategy of keeping net debt at or below zero “ensures independence from external financing and flexibility for future growth.”
Awaiting CADE decision on Cobasi merger
The company is awaiting a final ruling from wathdog´s CADE’s on its proposed merger with Cobasi, after the antitrust body’s technical team cleared the deal in June 2025. A decision is expected by mid-December 2025, before the regulator’s recess. If approved, the combined group would control roughly 11% of Brazil’s fragmented pet-care market, according to the case filings.
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