São Paulo, May 4th, 2023 - Pet Center Comércio e Participações S.A. ("Petz Group" or "Company") (B3: PETZ3) announces its results for the first quarter of 2023 (1Q23). It is worth mentioning that the Petz Group results below include the consolidation of (i) Zee.Dog from January 2022 onwards; and (ii) Petix from July 2022 onwards, except when indicated.
Since 2019, our Financial Statements have been prepared in accordance with IFRS 16. To better represent the current economic reality of the business, the numbers in this report are presented under the previous reporting standard IAS
17/CPC 06. The reconciliation with IFRS 16 in 1Q23 is available on pages 24-26.
- Petz Stores1: 220 units, with 3 openings (43 LTM)
- Petz Group Gross Revenue (GR)2: R$912.9mm; +22.3% y/y
- Petz Standalone Digital Gross Revenue (DGR): R$300.7mm; +36.7% y/y; 36.0% of Petz Standalone Gross Revenue (PGR) (+4.2 p.p. y/y)
- Petz Standalone Same-Store-Sales (SSS): +8.1% y/y
- Petz Group Gross Profit: R$363.5mm; +19.5% y/y; Gross Margin of 39.8% of GR (-0.9p.p. y/y)
- Petz Standalone Gross Profit: R$337.6mm; +20.6% y/y; Gross Margin of 40.4% of PGR (flat y/y)
- Petz Group Adjusted EBITDA3: R$65.0mm; +24.9% y/y; Adjusted EBITDA Margin of 7.1% of GR (+0.1 p.p. y/y)
- Petz Standalone Adjusted EBITDA3: R$70.1mm; +27.6% y/y; Adjusted EBITDA Margin of 8.4% of PGR (+0.5 p.p. y/y)
- Operational Cash Flow Generation: +R$34.5mm vs. -R$63.9mmin 1Q22
B3: PETZ3
R$5.94
Per share
462.471.262
Total Shares
R$2.7billion
Market Cap
IRContact
https://ri.petz.com.br/
ri@petz.com.br
+55 (11) 3434-7181
Data as of May 4th, 2023
R$ thousands, | 1Q23 | 1Q22 | Change | |||||||
unless otherwise stated | ||||||||||
Financial Results Petz Group | ||||||||||
Total Gross Revenue2 | 912,875 | 746,660 | 22.3% | |||||||
Petz Standalone Gross Revenue | 835,705 | 693,114 | 20.6% | |||||||
Gross Revenue from Acquisitions | 90,195 | 58,665 | 53.7% | |||||||
Digital Gross Revenue Petz Standalone | 300,663 | 220,013 | 36.7% | |||||||
Digital Penetration (% PGR) | 36.0% | 31.7% | 4.2 p.p. | |||||||
Gross Profit | 363,483 | 304,053 | 19.5% | |||||||
% Total Gross Revenue | 39.8% | 40.7% | (0.9 p.p) | |||||||
Petz Standalone Gross Profit | 337,567 | 279,996 | 20.6% | |||||||
% Petz Standalone Gross Revenue | 40.4% | 40.4% | 0.0 p.p. | |||||||
Adjusted EBITDA3 | 64,981 | 52,035 | 24.9% | |||||||
% Total Gross Revenue | 7.1% | 7.0% | 0.1 p.p. | |||||||
Petz Standalone Adjusted EBITDA3 | 70,105 | 54,930 | 27.6% | |||||||
% Petz Standalone Gross Revenue | 8.4% | 7.9% | 0.5 p.p. | |||||||
Adjusted Net Income4 | 19,193 | 21,103 | (9.1%) | |||||||
% Total Gross Revenue | 2.1% | 2.8% | (0.7 p.p) | |||||||
Operational Indicators Petz Standalone | ||||||||||
Number of Stores1 | 220 | 178 | 42 | |||||||
Store Openings | 3 | 10 | (7) | |||||||
Footage (m²) | 200,677 | 173,510 | 15.7% | |||||||
Seres Veterinary Centers | 126 | 139 | (13) |
1Considers the closure of the Ayrton Senna unit, Rio de Janeiro-RJ in 1Q23. More information on the footnot on page 9.
2Considers the effect of Intercompany Eliminations in the amount of R$13.0 million (details on page 10).
3Does not consider the effect of IFRS 16, in addition to the adjustments explained on page 17.
4Adjustments explained on page 18. Does not consider the effect of IFRS 16, therefore it should not be used as a reference for calculating dividends.
2
3
We started a new phase of the Petz Group in 2023, with renewed energy and an optmistic feeling. Despite the challenges and uncertainties in the retail segment and consumer environment in Brazil, we work based on assumptions of a solid level of growth this year for the Pet sector and Petz Group, which reinforces the resilience of our business and the differentiated positioning from our value proposition to customers. Furthermore, at a time when we are increasingly careful with expenses and investments in all areas of the Company, we believe that this normalized growth scenario ensures greater visibility for the management and control of the cost and expense structure.
Thus, with discipline and agility in the search for the best balance between growth, profitability and innovation, we continue to implement the main strategic projects of the Petz Group. Our goal is to maintain levels of competitiveness and investments in building the Ecosystem, a combination that will allow us to grow sustainably over the next few years, so that we can continue to be the major consolidator of this segment in Brazil.
At the beginning of 2023, we strengthened the governance structure with the creation of dedicated committees for the main business fronts and for creating short to long-term value, such as Gross Margin, Expenses, Integrations, CAPEX, among others. This work dynamic has generated even more robustness and cohesion within the Petz Group team, as these forums have the participation of the main business areas and a multidisciplinary approach into decision-making. The productivity agendas and the search for efficiency gains are part of the
Company's culture, always guided by data-driven decisions and constant mapping of opportunities.
In this context, the focus and discipline of Petz leaders are on (i) improving the profitability levels of Petz Standalone Digital channel; (ii) accelerating the capture of synergies in the process of integrating the acquired companies; and (iii) seeking a more efficient cash generation dynamic and capital structure.
Within the pillar of improving the profitability levels of Petz Standalone Digital channel, it is worth mentioning the updates of the initiatives that have been gradually implemented over the last few months (implementation of the service fee, removal of the Pick-updiscount and adjustments to the free shipping policy), and which seek to
continue the process of reducing the profitability gap vs. the physical channel.
As mentioned earlier, our vision is of building value. However, it is important to mention that these are recent movements and require a longer period of data analysis on customer buying behavior, in order to have a more structural and quantitative view of all those levers. In this sense, at the beginning of April, we withdrew from charging the service fee for Pick-upin São Paulo - SP, the most relevant market in terms of revenue. This corroborates our mentality of always being attentive to the most diverse KPIs and dynamics of the competitive scenario, in order to adjust these commercial conditions in an agile and segmented way, while maintaing market share gains. As market leaders also in the Digital channel, we believe in the importance of leading initiatives such as these in favor of greater rationality and better profitability in the segment, given the relevance that Digital has gained for companies in the sector.
4
On the front of accelerating the capture of synergies in the process of integration of acquired companies, it is worth noting that we created a dedicated structure for Integrations and Special Strategic Projects. The initial focus is on giving continuity to systemic integrations (such as financial, tax and accounting leverage), but at a faster pace and greater integration between the different business areas. In this sense, it is worth highlighting the integration in Zee.Now's front, with unified supply of 100% of the hubs, taking advantage of all the robustness of Petz's operational, commercial and supply structure, in addition to integrating the growth and data analytics part of CRM. In addition, Zee.Now's management structure has been more integrated with Petz's Digital since the beginning of the year, which allows for greater synergy in management, commercial strategy and processes. Finally, PIS (Petz Innovation Studio), which has as one of its main pillars the development of private label products in different value propositions and innovation, launched during this period in the categories of (i) accessories: new Petz collection and new Spike brand (more democratic) and (ii) dog pads: new Fresh Pads brand.
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Pet Center Comercio e Participações SA published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2023 08:49:08 UTC.