Uniao Pet Participacoes (AUAU3) Q2 2026 earnings summary

Executive summary

• Achieved strong integration progress between Petz and Cobasi, forming a leading pet retail group with 520+ stores and robust omnichannel execution, driving real revenue growth and operational synergies despite a challenging macroeconomic environment.

• Delivered solid growth and profitability, supported by high engagement, aligned governance, and disciplined execution.

• Operational cash generation was robust at R$213.4 million in 2Q26, reflecting high EBITDA-to-cash conversion and strong working capital management.

• Digital sales grew 9.2% year-over-year, reaching 40.6% of total sales, with balanced channel performance.

Financial highlights

• Gross revenue reached R$2.1 billion in 2Q26, up 7.8% year-over-year; 1H26 gross revenue totaled R$4.1 billion, up 8.7% year-over-year.

• Adjusted EBITDA was R$186.7 million in 2Q26, up 11.0% year-over-year, with margin expanding to 10.6%.

• Adjusted net income grew 8.4% year-over-year to R$70.3 million in 2Q26, with a stable margin of 4.0%.

• Gross margin expanded to 47.3% in 2Q26 (+0.1 p.p. year-over-year), supported by private label growth.

• Operating expenses grew 7.3% year-over-year but were diluted as a percentage of revenue, reflecting efficiency gains.

Outlook and guidance

• Management expects further margin and profitability expansion in H2 2026 as integration synergies, supplier renegotiations, and private label initiatives mature.

• Store closures (5–8 planned in H2) and rationalization will optimize the portfolio and support future growth.

• Expansion to resume in 2027 with 20–30 new stores per year, alongside continued digital and service investments.