Uniao Pet Participacoes (AUAU3) Q2 2026 earnings summary

Executive summary

• Achieved strong integration progress between Petz and Cobasi, forming a leading pet retail group with 520 stores and a robust omnichannel strategy, driving operational synergies and value creation despite a challenging macroeconomic environment.

• Delivered solid growth and profitability, with disciplined execution, efficiency focus, and robust operational cash generation of R$213.4 million in 2Q26.

• Digital sales grew 9.2% year-over-year, reaching 40.6% of total sales, while physical stores also expanded, demonstrating balanced channel performance.

Financial highlights

• Gross revenue reached R$2.1 billion in 2Q26, up 7.8% year-over-year; 1H26 gross revenue totaled R$4.1 billion, up 8.7% year-over-year.

• Adjusted EBITDA was R$186.7 million in 2Q26, up 11.0% year-over-year, with margin expansion to 10.6%.

• Adjusted net income grew 8.4% year-over-year to R$70.3 million in 2Q26, with a stable adjusted net margin of 4.0%.

• Gross margin expanded to 47.3% in 2Q26 (+0.1 p.p. year-over-year), supported by growth in private label sales.

• Operating cash flow generation was R$213.4 million in the quarter, boosting net cash position to R$286.1 million.

Outlook and guidance

• Management expects further margin expansion and value creation as integration synergies from the merger are realized in the second half of 2026 and beyond.

• Initiatives in store rationalization, supplier negotiations, and private label integration are expected to drive additional profitability.

• Store closures and portfolio optimization will continue, with 5–8 additional closures planned in H2 to maximize regional sales potential.

• Expansion to resume in 2027, targeting 20–30 new stores per year, with continued investment in digital and service integration.