Petz’s profit more than doubles in Q3

Brazilian retailer Petz more than doubled its profit in the third quarter of FY2025, recording R$33.4 million ($6.2M/€5.4M) in net income, an increase of 124%. During the same period last year, it hit R$14.9 million ($2.8M/€2.4M). 

However, adjusted net income grew more modestly year-on-year (YoY), rising 40.3% to  R$31.3 million ($5M/€5.8M). 

According to the company, although net income was affected by both tax effects and a monetary update of late tax credits, the yearly increase reflects “a combination of sustainable growth and operational efficiency focus.”

B2C business 

Total gross revenue for the period was R$1.08 billion ($203.6M/€176.5M), driven mainly by B2C (business-to-consumer) sales, which accounted for 93.6% of the total.

Revenue for this segment grew 7.3% YoY, driven by “balanced” growth across both physical (+8.1%) and digital (+6.7%) channels. Management says that this confirms “the relevance and resilience” of their omnichannel strategy. 

The B2B business, on the other hand, saw a 7.7% decline in sales. According to Petz, the result reflects “elevated inventory levels at international partners,” which led to a slowdown in new orders and instability in international trade. 

The B2B segment is small, however, representing only 3.18% of the quarter’s revenue.

Year to date

In the first 9 months of the year (9M2025), gross revenue was R$3.15 billion ($591.8M/€513.1M), up 7.8% from last year.

Petz reported R$50.8 million ($9.5M/€8.2M) adjusted net income for the period, a surge of 25.8% from 9M2024.

Performance drivers

Petz reported a positive Same Store Sales balance, which increased by 5.3% YoY, highlighted the opening of 3 new stores during the quarter, and noted the “significant” growth of private-label brands (+36% YoY).

Physical stores still play a central role: their revenue is higher than that of digital channels, and it is growing at a faster pace. 

This reinforces “the relevance of brick-and-mortar locations within the Company’s strategy,” Petz says, citing the “more assertive pricing initiatives” and “the success of the store gamification program.”

The company also emphasized the role of its loyalty and subscription program Clubz, which doubled its subscriber base since Q2. This is, according to Petz, “due to the expansion of offerings in physical stores and strong store team engagement.”

Merger update

CEO Sergio Zimerman commented on the merger process between Petz and Cobasi currently under review by the Brazilian Administrative Council for Economic Defense (CADE). 

“The company remains confident in the commissioners’ decision, as studies and the technical opinion have already recognized that the transaction does not present competitive risks in a highly fragmented and competitive market,” he says.

The operation had been approved without restrictions in June, but the case was reopened after a competitor appealed the decision. Now, the Brazilian competition watchdog has until the end of the year to rule on the case.

In a recent public hearing, Petz stated that the combined market share of both players fell from 10.7% in 2023 to 10.2% in 2024, ending a 5-year upward trend.