CEO’s review

“Musti continues to gain market share in a rebonding market. We are pleased that the key strategies of our ambitious growth plan are working as seen by the smooth integration of Pet City and increased customer engagement in all markets.” 

The financial year started with a relatively stable quarter where we delivered growth in the Nordic and Baltic markets with Musti continuing to gain market share in a tight trading environment. Net sales increased by 11.8% to EUR 119.8 million (EUR 107.2 million), including Pet City sales of EUR 8.5 million. Gross margin was slightly under pressure due to short-term investments to underpin market share gains and the integration of Pet City

Our strategy to invest in both news stores and appropriate promotional activities is paying off. Our plan is to deepen customer engagement in the Nordic market and use those lessons to take our experience to new markets. We are experiencing success in our concept implementation in the Baltic markets and I’m confident that the lessons from that will improve our approach as we review additional opportunities for expansion that will add further momentum to our growth.

Online sales remained strong at EUR 28.7 million ( EUR 27 million) accounting for 24.0% of sales (25.1%). Our rolling 12 months average spend per loyal customer increased to EUR 215.8 (EUR 213.4) and the number of customer also grew, by 1.0% to 1,853 thousand (1,835 thousand).

Financial performance was in line with expectations. Group adjusted EBITDA decreased to EUR 12.7 million (EUR 15.0 million), primarily due to targeted investment in price and campaign activities and the intgartion of Pet City. Adjusted EBITDA margin was 10.6% (14.0%) and is expected to rise as consumer confidence improves and as the integration of Pet City progresses.

We believe that the long-term market trend of pet parenting continues despite the softer demand during the past year and the uncertainty around trade policy. Our expectation, based on recent data, is that the market will and is starting to rebound to the long-term trend. Our fundamentals and competitive advantages remain strong, our customer base is continuing to grow, and we are prepared and in a strong position as consumer confidence rebounds.

Musti continues to actively seek new opportunities in existing and new markets. I’m excited about the journey ahead and confident that our omni channel offering will deliver the value and quality that underpins customer satisfaction in a consolidating European pet retail market.

To our team members – on behalf of our pet parents, our shareholders, our Brand, our Group management team and myself, thank you again for your incredible effort!

David Rönnberg,   

CEO