Musti Group plc Interim Report 7 November 2024 at 8:30
a.m. EET
Musti Group plc Interim Report 1 October 2023 - 30 September 2024
Musti remains resilient, growing the number of customers
July - September 2024
· Group net sales totaled EUR 111.5 (110.4) million, an increase of 1.0%
(8.4%).
· Like-for-like sales decreased by 0.9%.
· Adjusted EBITDA was EUR 16.5 (20.6) million.
· Adjusted EBITDA margin was 14.8% (18.7%).
· Adjusted EBITA was EUR 7.8 (12.6) million.
· Adjusted EBITA margin was 7.0% (11.4%).
· Net cash flow from operating activities was EUR 19.9 (29.0) million.
· Operating profit was EUR 5.8 (10.7) million.
· Profit for the period totaled EUR 2.8 (7.4) million.
· Earnings per share, basic was EUR 0.09 (0.22).
· Number of stores grew to 351 (342).
· Total number of customers grew to 1,861 thousand (1,806 thousand).
October 2023 - September 2024
· Group net sales totaled EUR 438.4 (425.7) million, an increase of 3.0%
(8.9%).
· Like-for-like sales growth was 1.1%.
· Adjusted EBITDA was EUR 64.4 (73.6) million.
· Adjusted EBITDA margin was 14.7% (17.3%).
· Adjusted EBITA was EUR 30.6 (42.6) million.
· Adjusted EBITA margin was 7.0% (10.0%).
· Net cash flow from operating activities was EUR 39.4 (79.6) million
(including impact of non-recurring items EUR 13.9 million).
· Operating profit was EUR 11.8 (37.8) million.
· Profit for the period totaled EUR 3.7 (26.5) million.
· Earnings per share, basic was EUR 0.11 (0.79)
The figures in parentheses refer to the comparison period, i.e., the same period
in the previous year, unless stated otherwise. The Group's previous financial
year was 1 October - 30 September and the current financial year is 1 October -
31 December, because the financial year has been changed. Consequently, the
Group publishes an interim report for Q4 instead of a financial statements
review, which will be published on 11 February 2025.
Key figures
+----------------------+------+------+------+--------+--------------+--------+
|EUR million or as |7-9/20|7-9/20|Change|10/2023-|10/2022-9/2023|Change %|
|indicated |24 |23 |% |9/2024 | | |
+----------------------+------+------+------+--------+--------------+--------+
|Net sales |111.5 |110.4 |1.0% |438.4 |425.7 |3.0% |
+----------------------+------+------+------+--------+--------------+--------+
|Net sales growth, % |1.0% |8.4% | |3.0% |8.9% | |
+----------------------+------+------+------+--------+--------------+--------+
|LFL sales growth, % |-0.9% |10.0% | |1.1% |9.5% | |
+----------------------+------+------+------+--------+--------------+--------+
|LFL store sales |-3.9% |7.1% | |-1.7% |6.7% | |
|growth, % | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Online share, % |24.5% |22.5% | |24.5% |23.0% | |
+----------------------+------+------+------+--------+--------------+--------+
|Gross margin, % |43.2% |46.0% | |44.1% |45.7% | |
+----------------------+------+------+------+--------+--------------+--------+
|EBITDA |16.0 |20.1 |-20.5%|51.4 |74.6 |-31.1% |
+----------------------+------+------+------+--------+--------------+--------+
|EBITDA margin, % |14.3% |18.2% | |11.7% |17.5% | |
+----------------------+------+------+------+--------+--------------+--------+
|Adjusted EBITDA |16.5 |20.6 |-19.8%|64.4 |73.6 |-12.5% |
+----------------------+------+------+------+--------+--------------+--------+
|Adjusted EBITDA |14.8% |18.7% | |14.7% |17.3% | |
|margin, % | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|EBITA |7.3 |12.1 |-39.8%|17.6 |43.6 |-59.7% |
+----------------------+------+------+------+--------+--------------+--------+
|EBITA margin, % |6.5% |11.0% | |4.0% |10.2% | |
+----------------------+------+------+------+--------+--------------+--------+
|Adjusted EBITA |7.8 |12.6 |-37.9%|30.6 |42.6 |-28.2% |
+----------------------+------+------+------+--------+--------------+--------+
|Adjusted EBITA margin,|7.0% |11.4% | |7.0% |10.0% | |
|% | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Operating profit |5.8 |10.7 |-45.6%|11.8 |37.8 |-68.9% |
+----------------------+------+------+------+--------+--------------+--------+
|Operating profit |5.2% |9.7% | |2.7% |8.9% | |
|margin, % | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Profit/loss for the |2.8 |7.4 |-61.5%|3.7 |26.5 |-86.2% |
|period | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Earnings per share, |0.09 |0.22 |-61.5%|0.11 |0.79 |-86.3% |
|basic, EUR | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Net cash flow from |19.9 |29.0 |-31.6%|39.4 |79.6 |-50.5% |
|operating activities | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Investments in |2.8 |2.8 |-1.9% |14.4 |11.9 |21.5% |
|tangible and | | | | | | |
|intangible assets | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Net debt / LTM |2.4 |1.9 |27.6% |2.4 |1.9 |27.6% |
|adjusted EBITDA | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Number of loyal |1,861 |1,806 |3.0% |1,861 |1,806 |3.0% |
|customers, thousands | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|Number of stores at |351 |342 |2.6% |351 |342 |2.6% |
|the end of the period | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
|of which directly |346 |330 |4.8% |346 |330 |4.8% |
|operated | | | | | | |
+----------------------+------+------+------+--------+--------------+--------+
“Musti continues to grow customers and market share in a tough Nordic consumer
environment highlighting that our integrated stores, online and services format
remains relevant and resilient. Further, we are confident that our investments
in both current and new markets will continue to extend our market share gains”
- David Rönnberg, Musti Group CEO
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
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 7 November 2024 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 7 November 2024
Board of Directors
The information in this Interim Report is unaudited.
Further Information:
David Rönnberg, CEO, tel. +46 70 896 6552
Robert Berglund, CFO, tel. +358 50534 8657
Distribution:
Nasdaq Helsinki
Principal media
www.mustigroup.com
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.
Musti Group's net sales were EUR 426 million in the financial year 2023. At the
end of the financial year 2023, the company had 1,643 employees, 1.5 million
loyal customers and 342 stores.