Petz (PETZ3) Q4 2024 earnings summary

Executive summary

• Achieved record gross revenue of R$1.1 billion in 4Q24, up 7.4% year-over-year, confirming operational recovery and resilience.

• B2C sales grew 9% year-over-year, with physical stores up 11.4% and digital channels up 6.4%.

• Private label products reached 12% of revenue, growing 46% in Q4 and 40% for the year.

• Gamification and improved store competitiveness drove increased customer traffic and engagement.

• Digital active customers increased 7%, and omnichannel customers spent 2.5x more than single-channel customers.

Financial highlights

• Gross margin improved by 0.7 p.p. year-over-year to 39.5%, with gross profit at R$417.3 million (+9.2% y/y).

• Adjusted EBITDA margin rose 1.1 p.p. to 7.9%, with adjusted EBITDA up 24.8% to R$83.3 million.

• Adjusted net income increased 49.7% year-over-year to R$22.4 million, excluding non-cash and non-recurring items.

• Operational cash generation rose 51.5% to R$57.4 million, covering all investments.

• Net debt stood at R$88.6 million (0.3x LTM Adjusted EBITDA) after R$130 million in dividends paid.

Outlook and guidance

• Entered 2025 with continued growth trends and stable gross margin, focusing on operational efficiency, private label, and omnichannel strategies.

• Plans to launch hundreds of new SKUs in the toy category and expand private label offerings in 1Q25.

• Inflation in the pet segment remains below official rates, creating both cost pressures and real growth opportunities.