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 |10-12/|10-12/|Change %|10/2023-12/2024|10/2022-9/2023|
|indicated |2024 |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 |-1.1% |2.5% | |-1.6% |6.7% |
|growth, % | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|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 |14.1% |17.7% | |14.6% |17.3% |
|margin, % | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|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 |3.6% |8.1% | |2.9% |8.9% |
|margin, % | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|Profit/loss for the |2.8 |5.8 |-51.7% |6.7 |26.5 |
|period | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|Earnings per share, |0.08 |0.17 |-51.4% |0.20 |0.79 |
|basic, EUR | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|Net cash flow from |7.6 |15.7 |-51.8% |46.9 |79.6 |
|operating activities | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|Investments in |4.8 |4.0 |18.9% |19.2 |11.9 |
|tangible and | | | | | |
|intangible assets | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|Net debt / LTM |3.1 |1.8 |63.7% |3.1 |1.9 |
|adjusted EBITDA | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|Total number of |1,866 |1,818 |2.6% |1,866 |1,806 |
|customers, thousands | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|Number of stores at |415 |348 |19.3% |415 |342 |
|the end of the period | | | | | |
+----------------------+------+------+--------+---------------+--------------+
|of which directly |411 |338 |21.6% |411 |330 |
|operated | | | | | |
+----------------------+------+------+--------+---------------+--------------+
“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 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.