CEO’s review

The business environment embossed by inflation and somewhat weaker consumer confidence affected the pace of growth. Despite the challenges, in relation to the broader retail sector, Musti, once again, performed best in class.

Net sales in the quarter increased by 5,4% to EUR 107.2 million (EUR 101.7 million). Growth was supported by the expansion of the store network and the strengthening online business which amounted to 25.1 % of total sales. Adjusted EBITDA decreased to EUR 15.0 million (16.6) mainly due to currency exchange rate fluctuations, and pressure on gross margins from mix movements and additional discounting. Margin is expected to return to long term trend levels over the coming quarters.

The expansion and optimization of the store network continued. We opened 12 directly operated stores year-on-year. During the quarter we acquired one franchise store, and four franchise stores left the chain. We are on good path and in line with the plan to open 20 to 25 stores a year, primarily in Norway and Sweden.

Our online business continued to perform very well. Like-for-like online sales grew by 11.6 % to EUR 27.0 million and accounted for 25.1% of total net sales. These numbers show that our online customers appreciate our broad offering and delivery options.  

During the quarter the public tender offer by Flybird Holding was finalized, resulting in a new major shareholder.  Our partnership with Flybird and in particular Sonae has started well, and the team and I are excited about the benefits that our collaboration with them will bring.

As we move into Q3 our focus remains to deliver great value to our Pet Parents, expand the business and improve profitability. Tight monetary policy conducted by central banks have kept interest rates high and restricted economies getting back on the track of growth. As financial conditions eventually ease and growth picks up, Musti is in a great position to exploit the opportunity. We are confident that our ability to combine a growing portfolio of products, services, and advice into convenient propositions for Pet Parents is unique and will be the key enabler of future success.

To our team members – on behalf of our shareholders, our Board, our Group management team and myself, thank you once again for your tireless commitment to support our customers and their pets.    

David Rönnberg,   

CEO