Petz (PETZ3) investor relations material

Executive summary

• Petz and Cobasi operated independently in 2025, with CADE approving their merger in December 2025; integration began January 2026, creating the largest pet ecosystem in Latin America.

• Both companies delivered robust growth, margin expansion, and strong cash generation despite a challenging macroeconomic environment in Brazil.

• Omnichannel penetration reached 93% for Petz and 98% for Cobasi, with digital sales representing over 40% of total sales for both brands.

• Opened 15 new stores in 2025, totaling 521 nationwide, and achieved strong digital participation (Petz 42.8%, Cobasi 38.6%).

• Integration aims to unlock significant synergies, focusing on commercial optimization, operational expense rationalization, and omnichannel strategy.

Financial highlights

• Cobasi Q4 2025 gross revenue grew 9.3% YoY, gross margin 45.9%, adjusted EBITDA margin 8.8%, adjusted net profit BRL 41 million (+80.1% YoY).

• Petz Q4 2025 gross revenue grew 8.7% YoY, adjusted EBITDA margin 9.3%, net cash generation over BRL 47.6 million.

• Combined 2025 revenue: BRL 7.87 billion (+8.8% YoY); consolidated EBITDA above BRL 600 million (9.2% margin).

• Net profit for the group reached BRL 241 million, up over 50% YoY.

• Net cash position at year-end: BRL 615 million.

Outlook and guidance

• 2026 focus is on integration, execution, and capturing synergies estimated at BRL 200–260 million per year over five years.

• 2026 synergy capture expected at 0–10% of target, net of 26 store divestitures required by CADE.

• Expansion plan for new stores in 2026 to mirror 2025, with rationalized capital allocation and technology investments.

• Emphasis on growth in private label and services, with both brands showing strong year-over-year increases.