Grupo Petz Cobasi (AUAU3) Posts Net Income of R$ 71.4 Million in 3Q26

Total gross revenue reached R$ 2.1 billion (R$ 2,116.1 million), up 6.6%. Petz grew 6.7%, to R$ 1.2 billion, and Cobasi grew 6.4%, to R$ 956.6 million. Growth came mainly from volume, with a price effect of about 1%. The physical channel totaled R$ 1.2 billion (+5.9%) and the digital channel, R$ 895.6 million (+8.4%), accounting for 42.3% of sales. Services revenue rose 23.4%. Same-store sales grew 6.4% on a consolidated basis.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 209.1 million, up 31.5%, with a margin of 9.9% of gross revenue (+1.9 p.p.), the highest in the company's history, and 12.3% of net revenue (+2.7 p.p.). The margin had been 8.9% in 2Q26 and 8.2% in 1Q26. Adjusted gross profit reached R$ 852.2 million (+8.5%), with a margin of 40.3% of gross revenue, versus 39.7% in 2Q26. Operating expenses totaled R$ 643.1 million (+2.7%) and fell from 31.5% to 30.4% of gross revenue. The company attributes the improvement to synergies with suppliers, private labels, indirect expenses and logistics.

The non-recurring result was an expense of R$ 25.4 million, including R$ 20.9 million from the effect of CAT Ordinance 42, related to the end of ICMS tax substitution on pet food in São Paulo since August 1. The company classifies the effect as transitory and with no cash impact. Operating cash generation was R$ 187.4 million, with 90% of EBITDA converted into cash.

The company redeemed R$ 133.3 million in debentures early in September, and gross debt fell 35.9%, to R$ 225.6 million. Net cash closed at R$ 415.1 million, up R$ 129.0 million in the quarter, equivalent to 0.6x adjusted EBITDA for the last 12 months. Without the cash outflows from the merger (R$ 573 million accumulated), it would have been R$ 988 million. The cash cycle fell from 33 to 26 days between 3Q25 and 3Q26. Total investments fell 19.0%, to R$ 53 million. The chain ended the period with 519 stores (266 Petz and 253 Cobasi), with 3 openings and 4 closures in the quarter, not considering the divestment of 26 stores provided for in the agreement with Cade. In the nine-month period, gross revenue totaled R$ 6.2 billion (+8.0%), adjusted EBITDA, R$ 562.4 million (+25.5%), and adjusted net income, R$ 220.3 million (+25.7%).