Uniao Pet Participacoes (AUAU3) Q4 2025 earnings summary

Executive summary

• Petz and Cobasi operated independently in 2025, with CADE merger approval in December 2025 and integration beginning January 2026, creating the largest pet ecosystem in Latin America.

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

• The combined group ended 2025 with 521 stores, high omnichannel penetration (Petz 93%, Cobasi 98%), and strong digital participation (Petz 42.8%, Cobasi 38.6%).

• Integration in 2026 is focused on unlocking synergies, operational excellence, and leveraging technology, with a dedicated leadership team and clear targets.

• Strong cash generation in 2025, ending with R$615 million in net cash.

Financial highlights

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

• Petz Q4 2025: gross revenue up 8.7% YoY, adjusted EBITDA margin 9.3%, net cash generation over BRL 47.6 million.

• 2025 full year: Cobasi net cash generation BRL 210.9 million, adjusted EBITDA margin 9.8%.

• Petz 2025: net cash generation BRL 203.5 million, adjusted EBITDA margin 8.7% (+12.4% YoY).

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

Outlook and guidance

• 2026 focus is on integration, execution, and capturing synergies, with 0%-10% of BRL 200-260 million annual synergy target expected this year.

• Store expansion in 2026 to mirror 2025, with rationalized capital allocation and emphasis on technology investments.

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