Petgo Corporation
7140・Growth Market・Retail Trade
Pet Healthcare Business (Pet Commerce Business)
E-commerce business specializing in pet healthcare products for dogs and cats
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (Pet Commerce Business, full year) | ¥7,127 million | ¥9,033 million | ↓ |
| Operating profit (Pet Commerce Business, full year) | ¥99 million | ¥585 million | ↓ |
| DTC brand sales (full year) | ¥2,493 million | ¥1,950 million (estimate) | ↑ |
| DTC brand sales ratio (as a percentage of total brand sales) | 33.7% | 20.9% | ↑ |
| Proprietary EC sales | ¥2,198 million | ¥3,140 million | ↓ |
| Third-party EC and other sales | ¥4,929 million | ¥5,893 million | ↓ |
| Segment assets | ¥1,866 million | ¥2,047 million | ↓ |
Business Details
An e-commerce business that sells pet healthcare products for dogs and cats, including veterinary pharmaceuticals, therapeutic diets, and supplements, through multiple channels via the proprietary online site "petgo" and several third-party online malls. Under the mid-term growth strategy of "DTC shift," the company is promoting the expansion of the share of its proprietary DTC brand "Vets One" series. This segment includes the Pet Healthcare Business of PETGO Co., Ltd. and PETGO Products Co., Ltd.
Recent Overview
Sales declined significantly due to a change in the national brand distribution structure, while DTC brand sales expanded 27.8% year on year
Pet Commerce Business sales in FY2026 (ending March 2026) were ¥7,127 million (down 21.1% year on year). The main cause was a significant decrease in national brand product sales due to a change in the distribution structure of the therapeutic diet brand of Royal Canin Japon LLC (disclosed in September 2024). On the other hand, due to the launch of DTC brand products including therapeutic diets, expansion of offline channels, and advertising and promotional investment, DTC brand sales reached ¥2,493 million (up 27.8% year on year), with the sales ratio expanding to 33.7%. Segment operating profit was secured at ¥99 million.
Key Products
Growth Drivers
- Expansion of the share of the DTC brand "Vets One" through expanded product lineup and new product launches (therapeutic diets, flea and tick control medications, etc.) (ratio of 33.7% in FY2026 (ending March 2026), aiming for further expansion)
- Expansion of DTC brand offline store presence (such as home improvement centers) and new dedicated DTC brand storefronts on various online malls
- Continued advertising and promotional investment to enhance DTC brand awareness and engagement
- Expansion of the pet healthcare market driven by increasing average pet lifespan and rising annual per-pet spending
- Stable revenue from the high retention rate of subscription commerce (recurring purchases) and the repeat customer base
Risks
- Risk of sales decline due to changes in distribution, discontinuation, or price revisions by national brand manufacturers (in FY2026 (ending March 2026), sales declined 21.1% year on year mainly due to the Royal Canin distribution change)
- Risk of persistently high SG&A expenses due to increased advertising and promotional investment in the DTC brand (consolidated operating loss after allocation of company-wide costs was ¥204 million)
- Constraints on volume expansion due to the declining trend in the number of dogs owned and rising raw material prices and yen depreciation
- Risk of rising customer acquisition costs due to insufficient brand recognition and strength of the proprietary online site
- Risks related to DX platform failures and security, as well as processing capacity constraints in logistics functions
Last updated: June 24, 2026