CEO’s review

“Q5 of 2024 saw Musti further consolidate its Nordic market leadership position and complete its move into the Baltics, strengthening Musti’s growth runway.  I am pleased we were able to profitably grow customer numbers and market share in what remained a tough consumer environment.” – David Rönnberg, Musti Group CEO     

The financial year ended with a satisfactory quarter in what remained a somber consumer environment. Net sales increased by 5.6% to EUR 122.2 million (EUR 115.7 million), led again by our online offering.  There was a small benefit from the inclusion of the sales of the Pet City stores post completion in November.  If Pet City was consolidated for the full quarter then the net sales growth would have been 10.7 %.

Online sales increased by 8,3% to EUR 29.2 million (EUR 26.9 million). Like-for-like online sales growth was 8.8% (13.0%). Online sales accounted for 23.9% (23.3%) of total net sales.

Store sales increased by 4.5% to EUR 90.4 million (EUR 86.4 million) as we added 65 directly operated stores during the quarter to our network, of which 62 as part of the acquisition of Pet City.  Sweden and Norway continued to perform well during the quarter, with positive sales growth, while Finland was impacted by lower consumer confidence leading to flat year over year performance.  All markets grew customer numbers and market share in pet specialty retail.

Financial performance was in line with our expectations. Group adjusted EBITDA decreased by 16.0% to EUR 17.2 million (EUR 20.5 million). The decrease was mainly due to the pressure on gross margin from the weak consumer climate (impacting mix) and inflation. Gross margin decreased to 44.0% (45.9%) due to targeted investment in price and campaign activities and a slight decrease in the share of sales of own and exclusive brands to 52% (53.0%). Adjusted EBITDA margin was 14.1% (17.7%). 

The economic outlook and the consumer confidence in the Nordics are expected to improve. Lower interest rates and the improving purchasing power of the consumer will impact Musti positively. 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. 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 to actively seek for new opportunities, both in existing markets and new geographical areas.

I’m excited about the journey ahead and confident that our omni channel offering will deliver quality and customer satisfaction in the consolidating European pet food and accessory market. To our team members – on behalf of our pet parents, our shareholders, our Board, our Group management team and myself, thank you for year 2024 and best of luck to the new year!

David Rönnberg,   

CEO