Petz Q2 earnings: digital drives profit again

Petz Group experienced significant progress in the second quarter (Q2) of 2024, with gross revenue at R$980.9 million ($180.3M/€162.5M), marking a 3.8% increase compared to the same period in 2023.

Q2 2024 stood out as the company witnessed a 21% increase in year-on-year active customers.

Customer base and subscriptions

Digital sales shone bright again. Similar to the company’s first-quarter earnings, this channel experienced a 29.2% year-on-year increase to R$435.3 million ($80M/€72.1M), attributing to a 44.4% share of total revenue.

This growth helped offset a 10.2% decline in physical store sales, which totaled R$545.6 million ($100.3M/€90.4M) and is attributed to a shifting consumer preference toward online channels.

The company’s digital strategy remains a focal point, with 94% of its digital sales coming from omnichannel services such as ‘Ship from Store’ and in-store pickups. July also marked a significant milestone as the company reached a record of over 500,000 subscribers.

On the operational front, Petz expanded its store network to 252 locations across Brazil, opening 3 new stores during the quarter. However, store openings slowed compared to the same period last year.

Private labels and new campaigns

Petz’s private-label offerings are considered its second-largest area, bolstered by collaborations with Zee.Dog and the launch of new exclusive products.

The company reported a 3.8% growth in the pet food segment, which was not influenced by price hikes.

Additionally, buoyed by the private label expansion, the accessories category rebounded in July after a flat second quarter and four consecutive negative quarters.

PETZ entered a merger agreement with Cobasi last week, and GlobalPETS published an in-depth analysis of the impact the merger could have on the Brazilian pet landscape.