Uniao Pet Participacoes (AUAU3) Q3 2025 earnings summary

Executive summary

• Achieved strong growth in 3Q25, with gross revenue of R$1.09 billion (+6.9% year-over-year) and net revenue of R$2.64 billion in 9M25 (+7.8%), driven by B2C and omnichannel strategies.

• Adjusted EBITDA grew 12.6% year-over-year to R$83.9 million in 3Q25, with margin improvement to 7.7%.

• Net cash generation reached R$140.5 million in 3Q25, with a net cash position of R$81 million at quarter-end, reflecting operational efficiency and reduced CAPEX.

• Private label sales reached 12.8% of total sales, up 36% year-over-year, supporting gross margin expansion.

• Clubz loyalty program doubled subscribers quarter-over-quarter, enhancing customer retention and frequency.

Financial highlights

• Gross profit in 3Q25 was R$429.8 million (+8.8% year-over-year), with gross margin at 39.6% (+0.7 p.p.).

• Adjusted net income rose 40.3% year-over-year to R$31.3 million in 3Q25, with adjusted net margin at 2.9%.

• Operating cash flow in 9M25 was R$419.1 million, up from R$352.7 million in 9M24.

• Capex in 3Q25 was R$35.2 million, down 10.8% year-over-year, with investments focused on store refurbishments and digital transformation.

• Net cash/EBITDA (LTM) at 0.3x, with no net debt maintained.

Outlook and guidance

• Management remains focused on cash generation, operational efficiency, and disciplined capital allocation.

• Expect continued margin pressure in Q4 due to intensified competition, especially in medication.

• Minimum growth target set at high single-digit to low double-digit to offset inflation and cost increases.

• Awaiting CADE tribunal decision on Petz-Cobasi merger, expected by January 2026.

• Anticipate positive demand impact in 2026 from income tax adjustments and sector growth.