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Musti Group Plc Half-year Financial Report 1 October 2019 – 31 March 2020

Musti Group Plc                        Half-year Financial Report      6 May 2020, at 8:30 a.m. EEST

Musti Group Plc Half-year Financial Report 1 October 2019 – 31 March 2020

Strong growth in net sales across channels and segments

January – March 2020

  • Group net sales totalled EUR 68.4 million (59.0 million), an increase of 15.9%.
  • Like-for-like sales growth was 14.8%.
  • Adjusted EBITA was EUR 5.5 (4.8) million, up by 15.8%.
  • Adjusted EBITA margin was 8.1% (8.1%).
  • Operating profit decreased by 10.3% to EUR 2.1 (2.4) million, representing 3.1% (4.1%) of net revenue.
  • Profit for the period totalled EUR -2.7 (0.1) million.
  • Earnings per share was EUR -0.09 (0.00).
  • Four new directly operated stores were opened during Q2.

October 2019 – March 2020

  • Group net sales totalled EUR 138.7 million (123.1 million), an increase of 12.7%.
  • Like-for-like sales growth was 11.1%.
  • Adjusted EBITA was EUR 13.3 (10.8) million, up by 23.7%.
  • Adjusted EBITA margin was 9.6% (8.7%).
  • Operating profit increased by 31.2% to EUR 7.5 (5.7) million, representing 5.4% (4.7%) of net revenue.
  • Profit for the period totalled EUR 1.0 (1.2) million.
  • Earnings per share was EUR 0.03 (0.04).
  • Number of stores grew to 287 (271 at 31 March 2019).
  • Number of loyal customers grew to 1,076 thousand (949 thousand).

The figures in parenthesis refer to the comparison period, i.e. the same period in the previous year, unless stated otherwise.
Musti’s financial year is from 1 October to 30 September.

Key figures

EUR million or as indicated 1–3/2020 1–3/2019 Change % 10/2019–3/2020 10/2018–3/2019 Change % FY2019
Net sales 68.4 59.0 15.9 138.7 123.1 12.7 246.6
Net sales growth, % 15.9% 10.8% 12.7% 15.5% 14.1%
LFL sales growth, % 14.8% 10.8% 11.1% 10.5% 11.2%
LFL store sales growth, % 10.0% 6.8% 8.5% 6.7% 7.8%
Online share, % 23.7% 21.7% 21.6% 20.7% 20.7%
Gross margin, % 43.3% 43.9% 44.4% 44.2% 44.3%
EBITA 3.6 3.8 -4.1 10.5 8.5 23.4 18.1
Adjusted EBITA 5.5 4.8 15.8 13.3 10.8 23.7 21.9
Adjusted EBITA margin, % 8.1% 8.1% 9.6% 8.7% 8.9%
Operating profit 2.1 2.4 -10.3 7.5 5.7 31.2 12.5
Operating profit margin, % 3.1% 4.1% 5.4% 4.7% 5.1%
Profit/loss for the period -2.7 0.1 n.m. 1.0 1.2 -14.4 3.0
Earnings per share, basic and diluted, EUR -0.09 0.00 0.03 0.04 0.10
Net cash flow from operating activities 4.8 3.5 36.5 19.5 18.3 6.1 39.5
Investments 2.4 1.5 59.3 4.9 3.1 57.5 6.4
Gearing, % 67.8% 147.0% 135.4%
Net debt / LTM adjusted EBITDA 2.3 4.4 3.5
Number of loyal customers, thousands 1,076 949 13.3 1,076 949 13.3 1,018
Number of stores at the end of the period 287 271 5.9 287 271 5.9 277
of which directly operated 218 198 10.1 218 198 10.1 206

CEO’s comments
We are pleased with Musti’s strong second quarter of the financial year 2020. Amid the disruptions caused by the coronavirus pandemic, our net sales grew by 15.9 per cent to EUR 68.4 million compared to the corresponding period last year and our like-for-like sales growth was 14.8 per cent. The growth was mainly driven by the increased number of new customers. The strong performance showed both in the like-for-like store sales growth of 10.0 per cent and the online growth of 31.0 per cent.

In Q2, we continued to focus on growth and gaining market share especially in online channels. We won new customers by investing in growth and offering good availability of products and fast local deliveries. Our strong omnichannel strategy and scalable platform have served us well, as we have seen a strong shift from stores to online channels due to the pandemic. This has been clearly visible in all of our online channels. After its online platform change in Q1, Peten Koiratarvike performed strongly in Q2 supported by marketing efforts and increased online demand.

Similar to groceries, there was a spike also in pet food demand when the coronavirus restrictions were implemented across the Nordics, but its effect on our total quarterly growth was limited, as it only impacted the last two weeks of the quarter.  Musti’s underlying growth has continued strong after Q2.

Musti is focusing on profitable growth, supported by the scalable platform and efficient cost control. This work was evident in the profitability development in Q2 as Musti’s adjusted EBITA increased by 15.8% to EUR 5.5 million and adjusted EBITA margin was on par with the comparison period at 8.1%. The adjusted EBITA improvement was mainly due to increase in sales, partly offset by a slightly lower gross margin due to the increased share of online sales. Our operating profit decreased by 10.3% to EUR 2.1 million due to costs related to the IPO in Q2.

We continued to have a strong cash flow from operating activities, growing by 36.5% to EUR 4.8 million.

All three segments – Finland, Sweden and Norway – showed strong like-for-like sales growth in Q2. Adjusted EBITA margins in Sweden and Norway continued to converge towards Finland’s level, in line with our objectives.

During the pandemic, our top priorities have been to keep our staff and customers safe and to maintain our ability to deliver high-quality service to our customers even under exceptional circumstances. We have paid rigorous attention to store hygiene and employee health, adjusted our store opening hours and strengthened our online capacity and warehouse functions to deliver the increased number of online purchases quickly and reliably. We are happy that during March we reached our all-time high Net Promoter Score in customer satisfaction feedback.

The pet care market has proven to be resilient to economic downturns in the past. Non-discretionary categories such as food, cat litter and veterinary services make up approximately 76 per cent of total market spend. During the coronavirus pandemic, the resilience of our business, comparable to grocery stores, has been apparent. We will continue to take operational actions and adjust cost base while we aim to serve our customers according to their channel preference, win new customers and keep our staff and customers safe.

We believe the trends driving the pet care market, such as the pet parenting megatrend and pet population growth, will remain robust also during and after the pandemic. Historically, the amount of puppy registrations has increased during economic downturns. This has been evident for example in Finland in the 1990s recession and during the financial crisis in 2008–2009.

Finally, I want to take this opportunity to thank everyone at Musti for their dedication and efforts during this difficult time. I am extremely proud of our work. Our mission is to make the life of pets and their parents easier, safer and more fun, and we have been able to do that even under these exceptional circumstances.

David Rönnberg

Financial targets and outlook
Musti Group does not publish its short-term outlook. However, Musti Group’s Board of Directors has set the following long-term financial targets:


Growth Sales to reach at least EUR 350 million by the financial year 2023
by continuation of strong customer acquisition momentum.
Profitability Mid- to long-term adjusted EBITA margin of 10-12 per cent with steadily improving profile. Margin increase is expected to be realised through steady gross margin and improving operating leverage.
Capital structure Maintain net debt in relation to adjusted EBITDA below 2.5x
in the long term.
Dividend policy To pay a dividend corresponding to 60–80 per cent of net profit. Any potential dividend shall take into account acquisitions, the company’s financial position, cash flow and future growth opportunities.

Press conference for analysts and media

A live webcast for analysts and media will be arranged on 6 May 2020 at 10:00 EEST. The event will be held in English. The report will be presented by CEO David Rönnberg and CFO Robert Berglund.

The webcast can be followed at A recording of the webcast will be available later at the company’s website at

You can participate in the telephone conference by calling:

FI: +358981710310
SE: +46 856642651
UK: +44 3333000804
US: +1 6319131422

The participants will be asked to provide the following PIN code: 18879685#.

Helsinki, 5 May 2020
Board of Directors

Further information:
David Rönnberg, CEO, tel. +46 70 896 6552
Robert Berglund, CFO, tel. +358 50 534 8657

Nasdaq Helsinki
Main 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.

Musti Group’s net sales were EUR 247 million in the financial year 2019. At the end of the financial year 2019, the company had 1,100 employees, over one million loyal customers and 277 stores.


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