CEO’s review

Group net sales increased by 1.0% to EUR 111.5 (EUR 110.4) million. The increase was largely due to solid online sales. Like-for-like sales growth, which is calculated in local currencies, was -0.9% (10.0%). Sweden and Norway continued to perform strongly during the quarter, while Finland was impacted by lower consumer confidence.

Online sales increased by 9,6% to EUR 27.3 million (EUR 24.9 million). Like-for-like online sales growth was 9.4% (20.7%). Store sales decreased by 1.0% to EUR 82.4 million (EUR 83.3 million). We added one directly operated store during the quarter to our network. Like-for-like store sales growth was -3.9% (7.1%). Online sales accounted for 24.5% (22.5%) of total net sales. 

We continued to make targeted short-term investments in price and campaign. As a result, Gross margin decreased to 43.2% (46.0%) and Group adjusted EBITDA decreased by 19.8% to EUR 16.5 million (EUR 20.6 million). We expect gross margin to rebound to long term levels in the medium term. 

The economic outlook for the Nordic consumer is still uncertain which impacts Musti. We believe that the long-term market trend of pet parenting continues despite the temporarily soft demand during the past year. Our expectation, based on recent data, is that the market is rebounding to the long-term trend and that the overall economy will pick up latest in 2025. Our fundamentals and competitive advantage remain strong, our customer base is continuing to grow, and we are prepared for the next growth cycle.

Musti continues its growth focus. Post quarter end we announced the planned acquisition of Pet City, completion expected before the end of 2024. Pet City operates pet stores and clinics in all Baltic countries, and we see that there is great potential for its further expansion and growth. Welcome to our new Pet City team members!

For Musti this will be the first acquisition as a part of Sonae group and geographically the natural direction to expand. With the acquisition of Pet City, Musti will strengthen its footprint as the market leader in Northern Europe working to deliver great service, advise and value to pets and pet parents in six countries.

To our team members – on behalf of our pet parents, our shareholders, our Board, our Group management team and myself, thank you for all you have achieved in a challenging environment.  Our hard work and dedication is delivering market share gains for which we can all be pleased. 

David Rönnberg,   

CEO