Brazil: Grupo Petz Cobasi reports high single-digit sales growth in first joint results

União Pet Participações, known as Grupo Petz Cobasi, announced its first quarterly results as a single entity following the merger of the Brazilian pet retailers last December.

In the first quarter of fiscal year (FY) 2026, the group posted a gross revenue of R$2 billion ($0.4B/€0.34B). This represents 9.7% year-over-year (YoY) growth.

Individually, Petz’s gross revenue increased 9.7% (YoY), while Cobasi’s grew 9.6% during the period. “Customers see the brands as different and complementary, which reassures us that there is no cannibalization between the banners,” notes company CFO Rafael Siqueira.

According to Siqueira, during 2025, there was greater competitiveness, especially in the pharmacy category. In the first quarter, this decreased, and Petz, in particular, managed to capture market share.

Profitability and margin

These results led to a gross margin of 46.8%, which represented a yearly expansion of 0.4 percentage points (p.p.).

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached R$166.6 million ($33.8M/€28.8M), growing 37.8% YoY.

Adjusted net income rose 45.3% from last year, reaching R$53.9 million ($11M/€9.3M).

According to the company, YoY comparison figures with 2025 are presented on a “managerial pro forma basis” simulating the consolidation of Petz and Cobasi’s results as a single operation.

Performance by channel

Physical stores still account for the majority of revenue, at 52.6%, totaling R$1.16 billion ($236M/€200M). The channel rose 8% YoY, which the company attributes to a recovery in customer traffic, assortment adjustments, pricing and commercial strategies.

During Q1, the company opened 1 new store under the Cobasi banner, bringing the group’s total to 522 locations.

Digital sales reached R$837 million ($170M/€145M) and grew at a faster 12.7% YoY. It now represents 41.4% share of total sales.

Pricing also played a role in performance, alongside loyalty initiatives. For instance, the loyalty programs Clubz and Amigo Cobasi drove purchase recurrence throughout the quarter.

“Operational indicators remain solid, with 965,000 unique subscribers in March 2026 (+9.8% YoY),” the company reports.

Omnichannel strategy

Additionally, 96% of digital sales occurred through omnichannel operations, which include orders shipped directly from stores or picked up by customers (click & collect).

CEO Paulo Nassar told investors that the company has been working to equalize pricing between online and physical stores, which is also boosting integration across channels.

“The results reflect the strength of our omnichannel model and a strong focus on austerity and expense control, prioritizing efficiency and productivity. The combined Company’s financial solidity allows us to move forward safely with the integration agenda,” he adds.

Services and private labels

The service is still small, but growing fast. Gross revenue increased 24.6% YoY, to R$46.2 million ($9.4M/€8M).

At Petz, its veterinary services are gaining market share in more complex procedures, the company says, such as ICUs, surgeries and exams. Additionally, its health care plan business began its national expansion during the quarter, “and already presents a relevant contribution to services revenue,” the company says.

For Bath & Grooming, the company is scaling its microfranchise model. At Cobasi, it reached 134 units by the end of the quarter, an increase of 20 stores in comparison with 2025.

CEO Paulo Nassar says services are one of the key areas the company has identified for medium-term growth, mainly to differentiate and counter the “price war” in the generalist marketplace.

Private labels

Private labels are also a strategic focus of the company, and both banners increased penetration of their own brands.

At Petz, sales advanced 25% YoY, accounting for 13.5% of total sales. At Cobasi, it grew 55.1% YoY, and now accounts for 8% of sales. “It is worth highlighting that private label penetration remains a key competitive differentiator for both brands,” Nassar says.

The pet retailer launched its first private-label product across all Petz and Cobasi stores on 1 April, introducing the Happy supplement line.

Integration plan and savings guidance

Regarding commercial negotiations, Nassar notes that the company has already defined strategies with suppliers to support both businesses and is making progress on renegotiating contracts. However, the results will be seen starting in the second half of 2026.

General and administrative expenses fell 1.6 p.p. to 36.9% of revenue. The result was mainly due to marketing optimization and growth in mature stores, says the CFO, a trend the company expects to intensify in the coming quarters.

Taking into account all the planned synergies, the company expects to generate additional EBITDA of R$200 million ($41M/€34.7M) to R$260 million ($53M/€45M) per year.