Pet Retail Market and Valuation Outlook slide image

Pet Retail Market and Valuation Outlook

108 29. Cobasi: A Purebred Competitor ||29. *** Appendix 29 Balance Sheet 17' 18' 19' Income Statement 17' 18' 19' Physical Market Share; [%] Total Assets 583 700 800 |(=) Net Revenue 786 873 1,053 Current Assets 247 315 356 (-) COGS 441 515 632 Petz Cobasi Cash & Equivalents 94 136 144 (=) Gross Profit 345 358 421 6.1% (-) SG&A 240 247 304 Receivables 71 78 97 (=) EBIT 105 111 117 4.9% 5% Advances 1 4.8% 3 1 (+) D&A 14 19 22 Inventory 75 90 112 |(=) EBITDA 119 130 139 3.1% 3.3% 5.4% Prepaid Expenses 1 1 Others 5 7 NO (=) Financial Result 1 -6 7 4.4% 4.8% 3.9% (+) Financial Revenue 16 10 26 Non-Current Assets 336 385 444 (-) Financial Expenses 15 16 19 2.9% 2.4% Investments 222 240 243 (=) EBT 106 105 124 PP&E 81 111 166 (-) Taxes 27 27 33 (=) Net Income 79 78 _91 Intangible Others 1 1 2 15' 16' 17' 18' 19' 20' 32 33 33 Total Liabilities 136 185 204 Current Liabilities 136 185 202 Suppliers 102 149 159 Short-Term Debt 6 0 Labor Obligations 6 7 Tax Liabilities 18 Others 11 Non-Current Liabilities 0 0 NOJ = N 2 21 11 Long-Term Debt 0 Long-Term Leasing 0 0 1 Others 0 0 1 Equity 447 515 596 9 Cobasi is Petz's biggest competitor with revenues of BRL 1.5 bn by 2020. The company has a similar business model to Petz and from the customer's point of view they are both very similar. In this aspect, we see Cobasi as the next consolidator in the sector next to Petz, although it has had a later development. The company also seeks a consolidation outside the state of São Paulo, focusing on mega stores of similar size and CAPEX as Petz. We see that Cobasi will be able to create a similar ecosystem to Petz, as it already has an outsourced veterinary clinic service (SPet) and has recently acquired Pet Anjo, a platform that offers the intermediation of services such as dog walker, babysitting, lodging and daycare. However, we see an advantage of Petz over Cobasi its best acquisitions and being the first-mover in this respect. Cobasi SPET Source: Diário Oficial; Team 7
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