Digital boosts revenue of Petz in Q1 2024
The Brazilian pet retailer posted an online gross revenue increase of 16.6% vs. a drop of 6.1% in its physical stores.
Petz Group posted a gross revenue of R$934.1 million ($181.1M/€167.9M) for the first quarter of 2024, an increase of 2.3% against the same period in 2022.
From January to March, gross profits jumped 0.1% to R$363.8 million ($70.5M/€65.4M).
The adjusted net income for the first quarter fell to R$6.8 million ($1.3M/€1.2M), marking a decline of 64.1% year-on-year (YoY) from R$19.1 million ($3.7M/€3.4M) during the same period in 2023. The company attributed the trend to “slower maturation of initiatives” like selective price adjustments for increased competitiveness.
Private label earnings were a “record achievement,” accounting for 9.1% of the retailer’s total revenue in the first quarter.
Online vs. offline
Gross revenue from Petz Group’s digital channels—which includes omni channel and e-commerce sales from Petz, Zee.Dog and Zee.Now—grew 16.6% to R$394.3 million ($76.4M/€70.8M). In Q1 2023, it was R$338.1 million ($65.5M/€60.7M).
Digital customers increased by 18% to 408,000 in Q1 2024.
Growth in the physical channel declined 6.1% to R$539.8 million ($104.6M/€97M). Despite this trend, the Brazilian retailer opened 3 new stores in the first quarter of 2024: 2 in the state of São Paulo (Araraquara and Arujá) and 1 in Santa Catarina (Brusque).
6 out of 10 sales are pet food
Food accounted for 60% of gross product revenue, growing 0.3% YoY.
In the non-food category, the hygiene and cleaning segment grew 15% YoY and pharmacy by 12%, while accessories declined by 4%.
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