Uniao Pet Participacoes (AUAU3) Q1 2026 earnings summary

Executive summary

• First quarter of 2026 marks the inaugural consolidated results post-merger, forming the largest pet ecosystem in Brazil with 522 stores and a robust omnichannel platform, showing strong operational and financial performance before full synergy capture.

• Revenue growth and operating leverage driven by omnichannel strategy, private label expansion, and disciplined efficiency.

• Integration plan is progressing on schedule, with over 600 activities underway, high adherence to the 100-day plan, and robust governance supporting execution.

• Digital channel revenue grew 12.7% year-over-year, now representing 41.4% of total sales.

• Initial synergies expected to be captured in the second half of 2026, with integration milestones on track.

Financial highlights

• Gross revenue reached R$2.0 billion, up 9.7% year-over-year; Petz +10.2%, Cobasi +9.6%.

• Adjusted EBITDA grew 37.8% year-over-year to R$166.6 million, with margin up 2.0 p.p. to 9.8%.

• Adjusted net income increased 45.3% year-over-year to R$53.9 million, with net margin up 0.8 p.p.

• Gross margin expanded by 0.4 percentage points to 46.8%.

• Digital sales grew 12.7% year-over-year; brick & mortar up 8.0%.

Outlook and guidance

• Guidance reaffirmed for capturing R$200–260 million in incremental EBITDA annually over five years, with 0–10% expected capture in 2026.

• Five-year synergy capture plan in place, with major gains contingent on ERP migration and legal entity consolidation.

• Store expansion pace in 2026 to match 2025, with acceleration planned for 2027.

• Management expects further synergy capture and operational improvements in the second half of 2026 and beyond.

• Focus remains on integration, efficiency, and cash generation, with a disciplined approach to capital allocation.