Uniao Pet Participacoes (AUAU3) Q2 2025 earnings summary

Executive summary

• Gross revenue rose 8.6% year-over-year to R$1.1 billion, with balanced B2C and B2B growth and strong private label performance.

• Adjusted EBITDA increased 39.5% year-over-year to R$83.6 million, with margin up 1.7 p.p. to 7.8%.

• Adjusted net income surged 81.8% year-over-year to R$18.5 million, reflecting operational efficiency and cost control.

• Store base reached 262 units, with a focus on existing store maturation and slower new openings to drive profitability.

• Clubz loyalty program and private label brands drove customer engagement and profitability.

Financial highlights

• Gross profit reached R$417.9 million, up 9.1% year-over-year, with gross margin at 39.2% (+0.2 p.p. year-over-year).

• Same store sales grew 5.5% year-over-year, maintaining positive momentum since 3Q24.

• Digital channel sales grew 4.5% year-over-year, with 93% of digital sales being omnichannel and digital penetration at 41.8% of gross revenue.

• Services segment grew 10.2% year-over-year, supported by new health plans and franchise pilots.

• Operating expenses were diluted to 31.4% of gross revenue (down 1.5 p.p. year-over-year).

Outlook and guidance

• Management expects continued operational efficiency, operating leverage, and profitability in the second half of 2025.

• Slower pace of new store openings to prioritize cash generation and mature store base profitability.

• Expansion of health and wellness services, including digital sales of Seres Saúde, to drive future growth.