AUAU3

União Pet Participações S.A., traded on B3 under the ticker AUAU3, is the holding company that brings together the operations of Cobasi, one of the leading specialty retail chains for pet products and services in Brazil. The company’s trajectory dates back to 1985, when it was founded in São Paulo by Rames Nassar, initially under the name Cobasi Comércio de Produtos Básicos e Industrializados S.A. At that time, the focus was on selling agricultural products, saddlery equipment and feed for horses, pigs and cattle. A structural shift in the business took place in the mid-1990s, when the Nassar family identified the growing importance of pets in the daily lives of Brazilian families and repositioned the company toward retail focused on pet care, opening the Villa Lobos unit, regarded as a milestone “megastore” for pet products in the country.

Over the years, Cobasi consolidated itself as a specialty pet retailer, with a large-assortment store model and focus on the shopping experience. From 2010 onward, and more intensely from 2015, the company began a more aggressive phase of geographic expansion, moving beyond its initial concentration in the city of São Paulo into inland cities and other regions of Brazil. Its expansion history includes milestones such as opening stores in strategic neighborhoods of São Paulo, the first unit outside the capital in Osasco, and its entry into the interior in Campinas. In 2020, the chain reached 100 stores, and in 2023 it reached 200 units, highlighting the business’s continued growth. By the end of 2024, the company operated more than 246 stores in different states, reinforcing its national footprint under the União Pet Participações corporate structure.

União Pet Participações’ business model is centered on the specialty retail segment, with integrated operations between physical stores and digital channels. The company operates a single operating segment, retail sales, which accounts for 100% of consolidated net revenue, totaling R$ 2.74 billion in 2024. The stores sell a wide range of pet products, including dry and wet food in different tiers (super premium, premium, standard and prescription diets), treats, medications, hygiene items, accessories, toys and clothing. In addition to merchandise sales, the group’s ecosystem includes the intermediation of services targeted at pet owners, such as grooming, bathing and veterinary care at partner units, as well as franchised services operated by subsidiaries such as Pet Anjo, focused on grooming, bathing and veterinary clinics.

The operation also relies on private-label brands developed in partnership with domestic and international suppliers, which add differentiation to União Pet Participações’ portfolio. Key exclusive brands include Myhug, focused on hygiene products such as shampoos, training pads and therapeutic conditioners; Origens, focused on food, including kibble, treats and pouches; and Flicks, dedicated to educational and interactive toys. These products are manufactured by partners according to specifications defined by the company, with no in-house industrial production. The private-label strategy aims to expand margins, strengthen loyalty and serve specific niches within the pet market, in line with trends of more demanding and segmented consumption.

União Pet Participações has a nationwide presence, with stores distributed across 20 Brazilian states. Units operate in different formats, from large experiential megastores to smaller neighborhood formats, allowing alignment with the demand profile of each region. The logistics structure consists of strategically located distribution centers, including a facility in Barueri (SP) opened in 2023, which increased the assortment available to supply the stores and reinforced integration with digital channels. The stores also function as mini distribution centers, supporting the Ship from Store model, in which part of online orders is shipped directly from retail locations, helping to reduce delivery times and costs.

In the digital arena, União Pet Participações runs a robust e-commerce platform, with its own website, a smartphone app, a presence on third-party marketplaces and partnerships with quick-delivery super apps. This omnichannel approach is complemented by services such as in-store pickup (Pick-up Store) and the aforementioned Ship from Store, integrating physical and online inventory. In 2018, the company launched a subscription platform that enables scheduled deliveries of recurring items such as food and hygiene products. In 2024, this channel had around 370,000 active subscribers, reinforcing revenue predictability and purchase recurrence. The “Amigo Cobasi” loyalty program, in place for more than 20 years, is another pillar of the relationship model, with more than 5 million registered customers and accounting for over 77% of sales in 2024, driven by benefits such as points accrual, offers and personalized content.

União Pet Participações operates in the Brazilian pet sector, a market characterized by high fragmentation and competition, with participation from specialty chains, supermarkets, major generalist retailers and independent shops. According to industry data cited by the company, the national pet market moved around R$ 75.4 billion in 2024, combining food, services, veterinary products and other categories. With revenue of around R$ 3.2 billion that year, the company estimates it holds approximately a 4.2% share of this market, in an environment where large non-specialist retailers still account for a significant portion of sales. The customer base is dispersed, and no individual client accounted for more than 10% of the company’s net revenue in the last three fiscal years, which reduces demand-concentration risk.

União Pet Participações’ activities are influenced by a broad set of government regulations, especially related to health, veterinary and agricultural inputs. As a retailer of veterinary products and animal feed, the company is subject to rules from the Ministry of Agriculture, Livestock and Food Supply (MAPA), including requirements for registering establishments that store or sell veterinary products, and compliance with specific conditions regarding packaging, temperature, shelf life and traceability of items sold. Products intended for animal feed must be duly registered with MAPA by their manufacturers or importers, and the company is responsible for ensuring that only regularized items are offered. The sale of live animals, fertilizers, seeds and seedlings is also subject to specific regulations, often enforced at the state level by the Departments of Agriculture and Agricultural Defense Coordinating Offices, with potential penalties ranging from warnings and fines to store closures in the event of non-compliance. The company does not itself engage directly in veterinary medical practice, which exempts it from registration with the Regional Council of Veterinary Medicine, although franchised service units, where applicable, must be regularized by their respective franchisees.

In this context, União Pet Participações, through the Cobasi brand and its subsidiaries, is positioned as an omnichannel, specialized retail platform focused on the pet market, combining national scale, a broad product assortment, complementary services and extensive use of loyalty programs and subscriptions to support recurring sales. The holding structure listed on B3 via AUAU3 shares consolidates these operations, reflecting a predominantly discretionary retail business, exposed to trends such as the humanization of pets and growing demand for convenience and integrated services in the pet segment.