Q2 2024 Pet Center Comercio e Participacoes SA Earnings Call (English, Portuguese) Transcript
Key Points
- Pet Center Comercio E Participacoes SA (BSP:PETZ3) announced a merger with Cobasi, creating a combined company with significant scale and synergies.
- The merger is expected to create the best and most integrated pet ecosystem in Brazil, benefiting consumers with improved services and competitive pricing.
- The company reported a 44.4% share in the digital channel, with an 8.7 percentage point growth year over year.
- There was a 21% increase in active customers in the digital channel and over 500,000 subscribers, representing an all-time high.
- The company achieved a positive same-store sales performance of 0.9%, reversing a negative trend from the previous three quarters.
- The second-quarter earnings were weaker than expected, with a gross revenue growth of only 3.8% and pressure on gross margins.
- The company faced a 60 basis point pressure on gross margins due to increased digital share penetration.
- EBITDA experienced a 130 basis point pressure, partly due to gross margin issues and increased sales expenses.
- The net income was negatively impacted by a non-cash effect of BRL13 million due to a debt in dollars.
- Operational expenses, including leases and personnel costs, grew at a higher pace than sales, impacting profitability.
(audio in progress)
(Operator Instructions) We would like to let you know this earnings call is being recorded and will be provided on the company's IR website.
Today, we'll have the presence of the company's executives, Sergio Zimerman, the CEO; and Aline Penna, the VP for Investor Relations, Finances, ESG, and New Business.
Now, I'll pass the word on to Mr. Sergio Zimerman.
Thank you so much. Good morning, everyone. Today is a very special day as we are right before we complete 22-year anniversary. And we have the honor to announce to the market the definite agreement on the signing about the merger of these two companies, and now we're just waiting for the closing.
And I also would like to greet Paulo Nassar, the Cobasi CEO, that will be the combined company's CEO, the brothers, Ricardo and João, which will be our future shareholders in the company within the Board as well and colleagues
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