Pet products retailer Petz (PETZ3) reported adjusted net profit of R$6.884 million in the first quarter of 2024 (1Q24), a value that represents a drop of 64.1% compared to the same period last year, reported the company this Thursday.
The company, which is negotiating a possible merger with Cobasi, stated that this drop in profit is due to lower operating leverage; the growth in depreciation and amortization linked to investments made in recent years and the increase in financial expenses.
Regarding the possible merger, Petz reaffirmed that after hiring the consultancy to evaluate synergies, the focus is to begin due diligence and strategic consultancy this month. According to the schedule presented, the signing of definitive documents, disclosure to the market and the protocol of the agreement at Cade is expected to take place between June and July, for evaluation by the competition defense body. Effective completion is scheduled for the first quarter of 2025.
Continues after advertising
Lower EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled R$60.114 million in 1Q24, a decrease of 7.5% compared to the first three months of last year.
The adjusted Ebitda margin reached 6.4% between January and March, which represents a drop of 0.7 percentage points compared to the first quarter of last year.
Gross revenue totaled R$934.151 million in the first quarter of 2024, growth of 2.3% compared to the same period last year.
Continues after advertising
Gross profit reached R$363.9 million between January and March, practically stable in relation to that recorded in the same period in 2023. As a result, the gross margin was 39% – compared to 39.8%.
Download a list of 11 Small Caps stocks that, in experts’ opinion, have growth potential in the coming months and years
On March 31, 2024, the company’s net debt was R$10.7 million, compared to cash of R$42.8 million at the end of the first quarter of last year.
The financial leverage indicator, measured by net debt/adjusted Ebitda, improved from 0.2 times to zero.
 has an adjusted profit of R$6.9 million, a drop of 64.1%){kind=link}