Uniao Pet Participacoes (AUAU3) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly gross revenue of R$1.1 billion in 4Q24, up 7.4% year-over-year, with B2C sales growing 9.0% and strong recovery in physical stores (+11.4% y/y) and digital channels (+6.4% y/y).

• Private label products reached 12% of revenue share, with 46% growth in Q4 and 40% for the year.

• Gamification and improved store competitiveness drove increased customer traffic and engagement.

• Opened 16 new stores in 2024, totaling 262 stores across 24 states, with a 3.9% increase in total sales area.

• Shareholders approved the business combination with Cobasi, pending antitrust (CADE) approval, with integration planning in advanced stages.

Financial highlights

• Gross margin improved by 0.7 percentage points year-over-year to 39.5%, with gross profit reaching R$417.3 million (+9.2% y/y).

• Adjusted EBITDA margin grew 1.1 percentage points to 7.9%, with adjusted EBITDA up 24.8% year-over-year to R$83.3 million.

• Adjusted net profit increased by 49.7% year-over-year in 4Q24 to R$22.4 million, excluding non-cash and non-recurring items.

• Operational cash generation rose 51.5% year-over-year to R$57.4 million, covering all investments.

• Net debt stood at R$88.6 million (0.3x LTM adjusted EBITDA) after R$130 million in dividends paid.

Outlook and guidance

• Entered 2025 with continued growth trends and stable gross margin, focusing on operational efficiency, customer loyalty, and expanding private label and omnichannel strategies.

• Plans to launch hundreds of new SKUs in the toy category and expand private label offerings in 1Q25.

• Inflation in pet segment remains below official rates, creating cost pressures but also real growth opportunities.