Musti continues to invest in expansion and market share
Musti Group plc Financial Statements Release 11 February 2025 at 8:30 a.m. EET
Musti Group plc Interim Report 1 October 2023 – 31 December 2024
Musti continues to invest in expansion and market share
October – December 2024
• Group net sales totaled EUR 122.2 (115.7) million, an increase of 5.6% (4.8%).
• Like-for-like sales growth was 1.2%.
• Adjusted EBITDA was EUR 17.2 (20.5) million.
• Adjusted EBITDA margin was 14.1% (17.7%).
• Adjusted EBITA was EUR 7.3 (12.4) million.
• Adjusted EBITA margin was 6.0% (10.7%).
• Net cash flow from operating activities was EUR 7.6 (15.7) million.
• Operating profit was EUR 4.5 (9.4) million.
• Profit for the period totaled EUR 2.8 (5.8) million.
• Earnings per share, basic was EUR 0.08 (0.17).
• Number of stores grew to 415 (348).
• Total number of customers grew to 1,866 thousand (1,818 thousand).
October 2023 – December 2024
• The financial years are not entirely comparable because FY24 was extended to 15 months
• Group net sales totaled EUR 560.6 (425.7) million
• Like-for-like sales growth was 1.1%.
• Adjusted EBITDA was EUR 81.6 (73.6) million.
• Adjusted EBITDA margin was 14.6% (17.3%).
• Adjusted EBITA was EUR 38.0 (42.6) million.
• Adjusted EBITA margin was 6.8% (10.0%).
• Net cash flow from operating activities was EUR 46.9 (79.6) million (including impact of non-recurring items EUR 15.3 million).
• Operating profit was EUR 16.2 (37.8) million.
• Profit for the period totaled EUR 6.7 (26.5) million.
• Earnings per share, basic was EUR 0.20 (0.79).
Key Events during the quarter
• Musti acquired the shares of Pet City OÜ (including its subsidiaries Pet City UAB, Pet City SIA and Pet City Klinika UAB) and Eesti Veterinaaria Kliinikum OÜ from Magnum Group for an Enterprise Value (EV) of EUR 18.0 million, of which EUR 13.7 million was paid in cash at closing. The remaining will be settled once the closing accounts have been approved by both buyer and the seller.
• Pet City operates 46 retail stores and 16 veterinary clinics in the Baltic countries including an e-commerce platform operating throughout the Baltic region. Pet City is reported in the New Markets segment that was formed in December 2024.
The quarterly figures in parentheses refer to the comparison period, i.e., the same period in the previous year, unless stated otherwise. Comparison period for the financial year 2024 is 1 October 2022 – 30 September 2023. Musti Group’s financial year was changed to calendar year during the reporting period, and therefore the financial year 2024 covers 15 months. The financial year was from 1 October to 30 September prior to the change. Due to the extended financial year, the amounts presented in this Financial Statements Release are not entirely comparable. Like-for-like growth for financial year 2024 has been calculated for the 15-month period.
Key figures
|
EUR million or as indicated |
10–12/2024 |
10–12/2023 |
Change % |
10/2023–12/2024 |
10/2022–9/2023 |
|
Net sales |
122.2 |
115.7 |
5.6% |
560.6 |
425.7 |
|
Net sales growth, % |
5.6% |
4.8% |
|
31.7% |
8.9% |
|
LFL sales growth, % |
1.2% |
4.8% |
|
1.1% |
9.5% |
|
LFL store sales growth, % |
-1.1% |
2.5% |
|
-1.6% |
6.7% |
|
Online share, % |
23.9% |
23.3% |
|
24.3% |
23.0% |
|
Gross margin, % |
44.0% |
45.9% |
|
44.1% |
45.7% |
|
EBITDA |
15.9 |
18.8 |
-15.7% |
67.2 |
74.6 |
|
EBITDA margin, % |
13.0% |
16.3% |
|
12.0% |
17.5% |
|
Adjusted EBITDA |
17.2 |
20.5 |
-16.0% |
81.6 |
73.6 |
|
Adjusted EBITDA margin, % |
14.1% |
17.7% |
|
14.6% |
17.3% |
|
EBITA |
6.0 |
10.8 |
-44.2% |
23.6 |
43.6 |
|
EBITA margin, % |
4.9% |
9.3% |
|
4.2% |
10.2% |
|
Adjusted EBITA |
7.3 |
12.4 |
-40,9% |
38.0 |
42.6 |
|
Adjusted EBITA margin, % |
6.0% |
10.7% |
|
6.8% |
10.0% |
|
Operating profit |
4.5 |
9.4 |
-52,6% |
16.2 |
37.8 |
|
Operating profit margin, % |
3.6% |
8.1% |
|
2.9% |
8.9% |
|
Profit/loss for the period |
2.8 |
5.8 |
-51.7% |
6.7 |
26.5 |
|
Earnings per share, basic, EUR |
0.08 |
0.17 |
-51.4% |
0.20 |
0.79 |
|
Net cash flow from operating activities |
7.6 |
15.7 |
-51.8% |
46.9 |
79.6 |
|
Investments in tangible and intangible assets |
4.8 |
4.0 |
18.9% |
19.2 |
11.9 |
|
Net debt / LTM adjusted EBITDA |
3.1 |
1.8 |
63.7% |
3.1 |
1.9 |
|
Total number of customers, thousands |
1,866 |
1,818 |
2.6% |
1,866 |
1,806 |
|
Number of stores at the end of the period |
415 |
348 |
19.3% |
415 |
342 |
|
of which directly operated |
411 |
338 |
21.6% |
411 |
330 |
“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
Financial targets
Following its review in April 2024, the Board of Directors of Musti Group Plc decided to withdraw the company's long-term financial targets, updated by the Board of Directors on 3 May 2021. With the new majority owner, Musti Group is now in a new strategic phase with need to focus on sustainable growth to create value to its pet parent customers, owners and other stakeholders. In addition, the Board of Directors resolved to amend the company's dividend policy as follows: The company's net profit shall be used towards financing the company's growth and investments, and the company does not expect to distribute dividends. The Board of Directors may however assess dividend distribution annually.
Webcast for analysts and media
A webcast for the analysts and media will be arranged on 11 February 2025 at 14:00 EET via Teams. To register in advance, please send an email to ir@mustigroup.com. The event will be held in English. The report will be presented by CEO David Rönnberg and CFO Robert Berglund.
Helsinki 11 February 2025
Board of Directors
The information in this Financial Statements Release is unaudited.
Further Information:
David Rönnberg, CEO, tel. +46 70 896 6552
Robert Berglund, CFO, tel. +358 50 534 8657
Distribution:
Nasdaq Helsinki
Principal media
Musti Group in brief
Musti makes the life of pets and their owners easier, safer and more fun. We are the leading Nordic pet care company, and we operate an omnichannel business model to cater for the needs of pets and their owners across Finland, Sweden and Norway. We offer a wide, curated assortment of pet products. We also provide pet care services such as grooming, training and veterinary services in selected locations.
