Pet Center Comercio e Participacoes SA
BOVESPA:PETZ3
Pet Center Comercio e Participacoes SA
Pet Center Comércio e Participações SA engages in the sale of pet products. The company is headquartered in Sao Paulo, Sao Paulo. The company went IPO on 2020-09-11. The Firm acts mainly as a retailer of pet feeds and supplies, such as toys, beds, clothes, bowls, litter, aquariums, medications and vitamins, among others. The company operates through digital platform and physical stores, located in 13 states and Federal District. The firm also provides veterinary services in clinics and hospitals, as well as animal hygiene and aesthetics services in stores. In addition, the Firm organizes pet-related events, such as fashion shows and contests, and promotes dog and cat adoptions. The firm is controlled by WP XI A Fundo de Investimento em Participacoes Multiestrategia.
Pet Center Comércio e Participações SA engages in the sale of pet products. The company is headquartered in Sao Paulo, Sao Paulo. The company went IPO on 2020-09-11. The Firm acts mainly as a retailer of pet feeds and supplies, such as toys, beds, clothes, bowls, litter, aquariums, medications and vitamins, among others. The company operates through digital platform and physical stores, located in 13 states and Federal District. The firm also provides veterinary services in clinics and hospitals, as well as animal hygiene and aesthetics services in stores. In addition, the Firm organizes pet-related events, such as fashion shows and contests, and promotes dog and cat adoptions. The firm is controlled by WP XI A Fundo de Investimento em Participacoes Multiestrategia.
Revenue Growth: Petz Group reported total gross revenue of BRL 1 billion for the quarter, reflecting a 6.9% growth, with B2C sales up 7.3% and physical stores up 8.1%.
Margin Expansion: Gross margin improved by 70 basis points, and EBITDA margin expanded by 40 basis points, driven by a higher mix of private-label products and store growth.
Strong Cash Generation: The company generated BRL 140 million in total cash and BRL 176 million in operational cash flow in the quarter, aided by lower CapEx and improved working capital.
Private Label Surge: Private-label sales rose 36% year-on-year, now accounting for 12.8% of total sales, with management targeting up to 20% share in the future.
Loyalty Program Acceleration: The number of Clubz loyalty subscribers doubled quarter-over-quarter, hitting record levels and supporting customer recurrence.
Competitive Pressures: Management emphasized growing competition from digital marketplaces and small retailers, which is pressuring margins and growth, particularly in digital channels and medication.
Cobasi Merger Update: The CADE (antitrust authority) is expected to rule on the Cobasi merger by December 17, with management expressing strong confidence in approval without remedies.
Service Segment Growth: Services revenue increased 13.4% in the quarter, outpacing product retail growth and seen as a key future strategy.
CapEx Discipline: CapEx was reduced by around 10% quarter-over-quarter and 20% year-to-date, reflecting a focus on self-funding and cost discipline amid high interest rates.
