Petz and Cobasi post high single-digit revenue growth in 2025

Brazilian pet retailers Petz and Cobasi ended the fiscal year (FY) 2025 with a combined revenue growth of 8.8% year-over-year (YoY). The companies merged last December, creating União Pet.

In the period ending 31 December 2025, Petz sales totaled R$4.3 billion ($0.8B/€0.7B), a 7.9% yearly growth. Cobasi’s sales totaled R$3.6 billion ($0.7B/€0.6B), a 9.9% YoY increase.

The fourth quarter (Q4) contributed positively to the results, with Petz revenue of R$1.1
billion ($0.21B/€0.18B), an 8.1% YoY increase. Cobasi posted R$947 million ($180M/€157M) in sales, a 9.3% increase.

As a result of the merger, these are the last standalone results that both companies are presenting as separate entities.

Revenue highlights

According to the group, both brick-and-mortar and online channels boosted performance during 2025.

For instance, sales in physical stores grew 7.3% YoY, while digital commerce grew 11.7% YoY. With this expansion, digital sales accounted for 40.9% of the total.

Additionally, both Petz and Cobasi posted acceleration in their service offerings in Q4, with 10% and 22% yearly increases, respectively. Same-store sales performance grew by 6.2% in Cobasi and 8% in Petz.

Profitability

The newly formed Brazilian pet retailer group posted adjusted net income of R$242.1 million ($46M/€40M), representing a 50.4% increase over 2024. In the quarter, adjusted net income was R$66.9 million ($12.8M/€11M), a 48.2% YoY surge.

Cobasi contributed the most to the results, accounting for 68% of the yearly net income and 61.3% of the quarterly figure.

Profit in the group was driven by “strong progress in private label brands and a balance between growth and margin, supporting consistent operational evolution,” the company says.

Cobasi highlights the launch of the Joy private-label dry pet food in August 2025, which helped the segment grow 37% YoY, reaching a 7.6% share of total sales. The company also says that logistics centralization to receive suppliers’ inventories decreased operational costs.

Petz’s private-label business also grew significantly during the period, by 26% YoY.

Investments and expansion deceleration

The group has halved its investments in new stores and hospitals throughout 2025. Although it opened a new distribution center that year, “resources were allocated to operational continuity projects and improvements to existing stores,” according to the earnings report.

In fact, as a condition for the merger to be approved, Petz and Cobasi had to divest 26 stores in the State of São Paulo to prevent a market monopoly.

Even with the setback, the companies opened 15 units in 2025, bringing the total to 521 stores with national reach.

Integration process

These were the last financial results released by the retailers as separate entities. The focus going forward is to continue the integration that began in January.

Group CEO Paulo Nassar told investors that 2026 will mark the beginning of a new chapter as a “unified company.”

“We announced a revision of the estimated synergy range expected to be captured over the next 5 years, amounting to R$200 million ($38M/€33M) to 260 million ($49.5M/€43M) in incremental EBITDA,” he says, adding that he remains confident in the team’s ability to execute the plan.

With this new forecast, the group lowered the cost-savings estimates by 21% to 40%. According to the CEO, 80% of expected synergy is concentrated in commercial optimization, operating expenses and store footprint. The remaining 20% is expected to come from digital and omnichannel and the services ecosystem.

União Pet anticipates achieving full synergy only in the fifth year after the merger, with progress made in the interim. Furthermore, the group reinforced that all physical stores will maintain their original brands, either Petz or Cobasi.