Private label, quick delivery and sales incentives boost Grupo Petz Cobasi’s Q2 growth

Brazilian pet specialty retailer Grupo Petz Cobasi increased gross revenue by 7.8% year-over-year (YoY) in the second quarter of 2026, amounting to R$2.1 billion ($0.4B/€0.34B). Gross revenue growth slowed from 9.7% in the previous quarter.

According to the company, growth was primarily volume-driven, with price increases broadly in line with inflation. “Sales growth represented a real gain, reflecting the positive impact of strategic initiatives, including a broader vision of the value proposition to the customer,” it says.

By store banner, Cobasi grew 8.6%, while Petz rose 7.2% YoY. Same-store sales, however, showed the opposite trend, with Petz growing by 7.4% and Cobasi by 6.6%.

Digital expands, but physical stores also grow

Digital sales increased by 9.2%, compared with 7.4% growth in physical stores. This uptick led online sales to account for 40.6% of sales, a 0.5 percentage point (p.p.) rise in comparison with 2025. 

According to the pet retail group, the result reflects a combination of the omnichannel model, service offerings and recovery in customer traffic, the latter enabled by “improvements in product assortment, pricing and commercial execution.” 

The company also highlighted increased engagement from the sales team driven by “gamification” through sales competitions and incentive campaigns.

The company ended the first half of 2026 with 520 stores, including 265 Petz and 255 Cobasi locations. During the quarter, it closed 2 Cobasi stores in São Paulo, the least profitable locations in its portfolio, as part of its store rationalization project. The initiative continued in July, with 2 additional closures.

The combined network makes the click-and-collect program more accessible. At the same time, it enables faster deliveries through ship-from-store options. As a result, the group says roughly 75% of orders were delivered within one day in Q2.

Profitability and private labels

Petz Cobasi reported that its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose by 0.3 p.p. YoY to 10.6%.

The performance resulted in an 8.4% increase in adjusted net income to R$70.3 million ($13.4M/€11.6M). 

Another factor contributing to margin expansion was the continued increase in private label penetration in sales, which reached 12.1% in the quarter, up 2.2 p.p. YoY.

As part of a strategy to unify operations and offerings, the company increased production of Petix (Petz’s own brand) to also accommodate the Cobasi banner. This move resulted in the brand accounting for more than 80% of pet pad sales in June. In addition, sales of its own brands under Petix and Zee.Dog (a lifestyle brand for cats and dogs) increased 25.4%.

Services

The services arm still represents a small portion of revenue: 2.3%, having totaled R$47.6 million ($9M/€7.8M) in Q2 2026. But growth is accelerating by 29% YoY.

Petz’s veterinary services platform, Seres, has gained share in “higher-complexity procedures, intensive care, surgeries and diagnostic exams,” the company says, while its pet healthcare membership and insurance program are contributing more to revenue.

For its bath and grooming business, the group expanded its microfranchise model to 135 stores.

H1 results

In H1, gross revenue totaled R$4.1 billion ($0.8B/€0.7B), up 8.7% YoY and reflecting strong first-quarter results.

Adjusted net income jumped even further, by 21.9%, to R$124.2 million ($23.7M/€20.4M), indicating that synergies and actions to reduce operating costs are helping to improve margins.

Outlook

Q2 was marked by the finalization of commercial agreements with suppliers to harmonize conditions between Petz and Cobasi. Although the pet retailer group does not offer guidance, it indicated that improvements could emerge in the third quarter as integration progresses. 

“The benefits from these negotiations are expected to begin materializing in 3Q26, as inventory purchased under previous commercial terms is gradually sold through, with gains expected to accelerate over the coming quarters,” the group explains.

“We enter the second half of the year with an increasingly integrated operation, a solid financial position, strong cash generation capacity and a clear operational efficiency agenda,” CEO Paulo Nassar concludes.