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Musti Group plc Half-Year Financial Report 1 October 2020 – 31 March 2021

Musti Group plc                        Half-Year Financial Report              4 May 2021 at 8:30 a.m. EEST

Musti Group plc Half-Year Financial Report 1 October 2020 – 31 March 2021

Accelerating growth

January – March 2021

  • Group net sales totalled EUR 82.4 million (68.4 million), an increase of 20.5%.
  • Like-for-like sales growth was 11.6%.
  • Adjusted EBITA was EUR 7.7 (5.5) million, up by 39.0%, including EUR 0.8 million short-term negative impact relating to warehouse consolidation.
  • Adjusted EBITA margin was 9.3% (8.1%).
  • Operating profit increased by 183.1% to EUR 6.1 (2.1) million, representing 7.4% (3.1%) of net sales.
  • Profit for the period totalled EUR 3.8 (-2.7) million.
  • Earnings per share, basic was EUR 0.11 (-0.09).
  • Number of stores grew to 301 (287).

October 2020 – March 2021

  • Group net sales totalled EUR 166.7 million (138.7 million), an increase of 20.2%.
  • Like-for-like sales growth was 12.3%.
  • Adjusted EBITA was EUR 18.3 (13.3) million, up by 37.5%.
  • Adjusted EBITA margin was 11.0% (9.6%).
  • Operating profit increased by 92.5% to EUR 14.5 (7.5) million, representing 8.7% (5.4%) of net sales.
  • Profit for the period totalled EUR 11.6 (1.0) million.
  • Earnings per share, basic was EUR 0.35 (0.03).
  • Number of stores grew to 301 (287).
  • Number of loyal customers grew to 1,222 thousand (1,076 thousand).

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

Key figures

EUR million or as indicated 1-3/2021 1-3/2020 Change % 10/2020-3/2021 10/2019-3/2020 Change % FY2020
Net sales 82.4 68.4 20.5 166.7 138.7 20.2 284.4
Net sales growth, % 20.5% 15.9% 20.2% 12.7% 15.3%
LFL sales growth, % 11.6% 14.8% 12.3% 11.1% 11.5%
LFL store sales growth, % 8.6% 10.0% 8.3% 8.5% 7.3%
Online share, % 24.4% 23.7% 23.0% 21.6% 22.5%
Gross margin, % 45.3% 43.3% 45.7% 44.4% 43.8%
EBITA 7.7 3.6 112.7 17.7 10.5 69.3 25.5
Adjusted EBITA 7.7 5.5 39.0 18.3 13.3 37.5 29.8
Adjusted EBITA margin, % 9.3% 8.1% 11.0% 9.6% 10.5%
Operating profit 6.1 2.1 183.1 14.5 7.5 92.5 19.6
Operating profit margin, % 7.4% 3.1% 8.7% 5.4% 6.9%
Profit/loss for the period 3.8 -2.7 n.m. 11.6 1.0 1075.5 11.8
Earnings per share, basic, EUR 0.11 -0.09 0.35 0.03 0.37
Net cash flow from operating activities *) 14.0 4.7 196.4 29.9 19.3 54.6 41.9
Investments in tangible and intangible assets 3.1 2.4 27.5 6.2 4.9 27.4 8.9
Net debt / LTM adjusted EBITDA 1.9 2.3 -17.0 1.9 2.3 -17.0 2.0
Number of loyal customers, thousands 1,222 1,076 13.6 1,222 1,076 13.6 1,151
Number of stores at the end of the period 301 287 4.9 301 287 4.9 293
of which directly operated 247 218 13.3 247 218 13.3 231

*) Interest and other finance income received has been reclassified from net cash flow operating activities to net cash flow from financing activities.

CEO’s comments

As Nordic societies are slowly starting to reopen and adapt to a time after the pandemic, we couldn’t be better positioned for it. Pet adoption surged in 2020 and that surge continues as people seek for companionship and joy of pet parenthood. The number of pet-owning households is clearly increasing leading to an expanding market opportunity for Musti Group for many years to come. We are excited about this, as it leads to a long-lasting relationship with our new customers for years to come. Understanding and anticipating our customers’ needs helps us create sustainable advantages to strengthen our position further.

Looking back to recent development, I am very pleased to report our second quarter results today:

  • Group net sales increased by 20.5% to EUR 82.4 million (EUR 68.4 million). The increase was largely due to like-for-like growth in all countries and the increasing number of new customers and an increased number of directly operated stores. Like-for-like growth amounted to 11.6% (14.8%).
  • Store sales increased by 21.5% to EUR 59.3 million (EUR 48.8 million), driven by an increased number of stores and strong like-for-like store sales growth especially in Sweden and Norway. Like-for-like store sales growth amounted to 8.6% (10.0%).
  • Online sales increased by 24.1% to EUR 20.1 million (EUR 16.2 million). Online sales accounted for 24.4% (23.7%) of total net sales. Online sales growth was strong in Finland and Norway. In Sweden, the growth was slower due to a short-term negative impact related to the platform change, warehouse consolidation and meeting strong channel shift caused by the COVID-19 pandemic during the corresponding quarter previous year.
  • Net cash flow from operating activities was strong and totaled EUR 14.0 million (EUR 4.7 million).
  • Musti Group’s underlying growth has continued strong after the second quarter.

The puppy registrations have continued to be on a high level with 31% growth in registrations in Sweden in March 2021. Compared to the corresponding quarter previous year, the number of Musti Group’s new puppy customers increased by 44% during the second quarter and we are clearly getting more than our share of the new puppies. What is exciting is that we can clearly see that puppies joining the Musti system being more active and loyal and spending more. Thus, the inflow of new customers we are getting will bring a predictable and recurring sales stream for many years to come. Growing the share of wallet of our customers is a key part of our growth strategy. The customer groups we acquired in the last four quarters were the best in Musti Group’s history: bigger in number, and highly engaged displaying stronger repurchase behavior compared to any customers groups before.

Profitable growth continued in the second quarter as Musti Group’s adjusted EBITA increased by 39.0% to EUR 7.7 million from the corresponding quarter previous year. Adjusted EBITA margin was 9.3% (8.1%). Adjusted EBITA growth was partly offset by EUR 0.8 million additional costs due to low efficiency in Eskilstuna central warehouse as a result of the warehouse consolidation project. This is non-recurring by nature and the efficiency is expected to normalize during the second half of the financial year. Excluding these costs adjusted EBITA increased by 53.0% to 8.5 million. Gross margin increased to 45.3% (43.3%) due to more efficient marketing campaigns, favourable product mix and efficient supply chain management. Operating profit increased by 183.1% to EUR 6.1 million (EUR 2.1 million).

Adjusted EBITA margin increased to 12.5% in Sweden and was on the previous year’s level in Finland at 22.8%. In Norway, the overall growth and profitability trend has been exceeding our expectations. The latest opened stores and won new customers have turned out even more profitable than earlier as our brand awareness is growing nationwide, and we have finetuned our location strategy. In the second quarter, the adjusted EBITA margin increased to 16.0% in Norway.

The board has reviewed the long-term financial targets as published earlier today. We are well on track and committed on delivering on our plan and the updated long-term financial targets. We continue to focus on our priorities: growing profitably, winning new customers, and systematically growing the share of wallet with our customers, supported by the expanding selection of products and services in our continuously developing Musti Group ecosystem. In doing so, we will strengthen our position as the market leader as we move towards time after the pandemic – and beyond. We look forward to a future marked by ongoing innovation, winning customer hearts and minds and growing market share.

David Rönnberg,


Financial targets

The long-term financial targets updated by the Board of Directors on 3 May 2021 are:

Growth Net sales to reach at least EUR 500 million by the financial year 2024 by continuation of strong customer acquisition momentum and increasing share of wallet.
Profitability Mid- to long-term adjusted EBITA margin of at least 13 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.

The financial targets are forward-looking statements and are not guarantees of future financial performance.

Webcast for analysts and media

A live webcast for analysts and media will be arranged today, on 4 May 2021 at 14:00 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:

Finland: +358 981710310 

Sweden: +46 856642651 

United Kingdom: +44 3333000804 

United States: +1 6319131422 

The participants will be asked to provide the following PIN code: 16121928#


Helsinki, 4 May 2021

Board of Directors

The information in this Half-Year Financial Report is unaudited.


Further information:

David Rönnberg, CEO, tel. +46 70 896 6552
Robert Berglund, CFO, tel. +358 50 534 8657                                                                                                                                                                               Essi Nikitin, Head of IR and Communications, tel +358 50 581 1455


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Musti Group in brief

Musti Group 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 284 million in the financial year 2020. At the end of the financial year 2020, the company had 1,162 employees, over one million loyal customers and 293 stores.


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