The Brazilian pet retailer reported sales worth R$944.8 M (€176.1M/$193.1M), but less income.
The gross revenue of the Brazilian pet retailer witnessed an 18% increase compared to R$800.7 million (â¬148.7M/$163.6M) in Q2 2022.
Petzâs standalone revenue accounted for R$870.2 million (â¬161.6M/$177.8M), marking a 16.2% growth rate. The companyâs same-store sales (SSS) also increased by 5.7% year-on-year.
The companyâs standalone gross revenue grew 16.2%, largely attributed to its digital front, totaling R$312 million (â¬57.9M/$63.7M) in sales with a 28.4% annual increase.
Gross revenue from acquisitions made the company R$95.7M (â¬17.8M/$19.6M), a 71.2% increase since last yearâthe companyâs pet lifestyle brand Zee.Dog registered $55.6 million (â¬10.3M/$11.3M), while its dog training pad company Petix hit R$40 million (â¬7.4M/$8.1M).
Consolidated revenue for H1 2023 spiked by 20.1% to R$1.86 billion (â¬346.7M/$380.5M) from R$1.5 billion (â¬278.6/$306.5M) in the first half of 2022. At the same time, profits rose to R$738.4 million (â¬137.1M/$151M) from January to June 2023, witnessing a 17% increase.
Less net income
Despite revenue growth and an increase in profit margins by 14.5% to R$374.9 million (â¬69.9M/$76.7M) in Q2 2023, the gross margin of 39.7% fell by 1.2% since Q2 2022 due to margin pressure by Petz standalone and the consolidation of Petix.
Overall, Petzâs adjusted net income fell by 25.1% year-on-year, reflecting a lower financial result this quarter than last year.
Revenue through omnichannel grew 27.8% this quarter, while the omnichannel ratio stood at a benchmark level of 88.6%, down 0.3% from H1 2023.
âThe consumption environment proved uncertain, with demand still cooled by macro conditions, in addition to the more intense competitive scenario with marginal initiatives in favor of profitability by our competitors, which impacted our growth rate in recent months,â the companyâs report states.
Quarterly outlook
The group opened 11 new storesâ8 outside São Paulo, 6 of which were in new cities across Brazil. This sees the companyâs physical stores grow to 231 stores in total.
More than half (54%) of the stores are yet to complete their third year of operation, implying an expected short-term outfit once they reach their full revenue and profit potential.
The latest articles
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.
Russia’s pet population has risen 11% since 2020
New data reveals that last year, more than half of households in the country owned a pet. GlobalPETS dives into the insights.
The American Kennel Club acquires grooming certification program
The Professional Grooming Credential is a voluntary scheme to validate pet groomers’ knowledge and technical skills.
Weekly newsletter to stay up-to-date
Discover what’s happening in the pet industry. Get the must-read stories and insights in your inbox.