Uniao Pet Participacoes (AUAU3) Q4 2025 earnings summary

Executive summary

• The year was marked by the CADE approval of the Petz-Cobasi merger in December 2025, creating the largest pet retail group in Latin America, with integration and synergy plans underway for 2026.

• Both companies delivered robust growth, margin expansion, and strong cash generation despite a challenging macroeconomic environment in Brazil.

• Balanced growth between physical and digital channels reinforced the resilience of the omnichannel model, with digital penetration at 42.8% for Petz and 38.6% for Cobasi.

• Integration aims to unlock significant synergies, focusing on commercial optimization, operational expense rationalization, and omnichannel strategy, with a dedicated leadership team and clear targets.

• 15 new stores were opened in 2025, reaching a total of 521 nationwide.

Financial highlights

• Group consolidated 2025: gross revenue R$ 7.87 billion (+8.8% YoY), EBITDA R$ 607 million (9.2% margin), net profit R$ 241 million (+50% YoY).

• Petz Q4 2025: gross revenue R$ 1.14 billion (+8.1% YoY), adjusted EBITDA margin 9.3%, net cash generation R$ 47.6 million.

• Cobasi Q4 2025: gross revenue R$ 947 million (+9.3% YoY), gross margin 45.9%, adjusted EBITDA margin 8.8%, adjusted net profit R$ 41 million (+80.1% YoY).

• Full year 2025: Petz net cash generation R$ 203.5 million, adjusted EBITDA margin 8.7% (+12.4% YoY); Cobasi net cash generation R$ 210.9 million, adjusted EBITDA margin 9.8%.

• Net cash position at year-end: R$ 615 million consolidated, R$ 160.7 million for Petz, reversing net debt in 2024.

Outlook and guidance

• 2026 focus is on disciplined integration, execution, and capturing synergies estimated at R$ 200–260 million in incremental EBITDA over five years, with 0–10% expected in 2026.

• Expansion plan for new stores in 2026 will mirror 2025, with rationalized capital allocation and technology investments.

• Emphasis on growth in private label and services, with both brands showing strong year-over-year increases in these segments.