Stores and private label: Behind Petz’s soaring profit in Q2

Petz delivered a jump in profitability in Q2 2025, reflecting strong business momentum. Net income for the quarter hit R$23.89 million ($4.78M/€4.30M). Gross profit increased by 9.1% YoY to R$418 million ($83.6M/€75.2M). 

This improvement was driven by stronger physical store sales, improved gross margin in the digital channel, increased penetration of private label products and the recovery of the accessories category since Q3 2024.

Gross revenue rose by 8.6% to R$1.1 billion ($220M/€198M) compared to R$981 million ($196M/€176.6M), driven by balanced performance across both B2C and B2B segments, which grew 8.5% and 9.8% YoY, respectively.

The B2B growth recovery was primarily driven by the firm’s dog food manufacturer Petix, which delivered strong sales growth in both pet store and grocery retail channels.

Physical store sales grew 11.8% year-on-year (YoY) to R$585 million ($117M/€105M), while Petz’s digital sales rose 4.5% YoY to R$445 million ($89M/€80M), with 93% of these transactions coming from omnichannel sales.

Performance by segment 

The quarter also saw a 10.1% YoY growth in gross product revenue from its main categories, driven by the strong performance of the food, hygiene and cleaning categories, followed by accessories and pharmacy.

The services segment also grew 10.2% YoY due to various initiatives, including the franchise pilot launched in selected stores in São Paulo for both bath, grooming and vet, which has shown positive initial results. 

In April, Petz also launched a program offering preventive care packages and pet health plans. Seres Saúde, which is Petz’s veterinary care centers, currently operates 5 stores in São Paulo and 43 additional points of sale.

“On August 18, we will launch sales through the Petz digital channel, making the service available to the general public, with an initial focus on existing customers in São Paulo and Campinas,” says Petz CEO Sérgio Zimerman.

H1 performance

For the first half of FY2025, net income soared over 3,100% to R$24.6 million ($4.9M/€4.4M) from R$700,000 ($140K/€130K) in H1 2024. 

Gross revenue increased 8.2% to R$2 billion ($400M/€360M) from R$1.9 billion ($380M/€342M), while gross profit grew by 8.4% to R$810 million ($162M/€145.8M), compared to R$746 million ($149.2M/€134.3M). 

Petz-Cobasi merger

Petz is now awaiting a decision from Brazil’s Administrative Council for Economic Defense (CADE) after Petlove appealed for unconditional approval for the merger between pet retailers Petz and Cobasi. 

“Petz remains confident in the agency’s decision, as both the technical report and supporting studies have already recognized that the transaction poses no competitive risks in a highly fragmented and competitive market,” says the company.

According to Petz, if the merger approval is confirmed, the combined company will hold approximately 10% market share.