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Musti Group plc Half-Year Financial Report 1 October 2021 – 31 March 2022

Musti Group plc                Half-Year Financial Report              10 May 2022 at 8:30 a.m. EEST

Musti Group plc Half-Year Financial Report 1 October 2021 – 31 March 2022

Solid first half – on track with the long-term targets

January – March 2022

  • Group net sales totalled EUR 92.4 million (82.4 million), an increase of 12.1%.
  • Like-for-like sales growth was 4.5%.
  • Adjusted EBITDA was EUR 14.0 (13.1) million, up by 6.5%.
  • Adjusted EBITDA margin was 15.1% (15.9%).
  • Adjusted EBITA was EUR 7.0 (7.7) million, down by 9.2%.
  • Adjusted EBITA margin was 7.6% (9.3%).
  • Operating profit decreased by 11.0% to EUR 5.4 (6.1) million, representing 5.9% (7.4%) of net sales.
  • Profit for the period totalled EUR 3.8 (3.8) million.
  • Earnings per share, basic was EUR 0.11 (0.11).
  • Number of stores grew to 324 (301).
  • Number of loyal customers grew to 1,372 thousand (1,222 thousand).

October 2021 – March 2022

  • Group net sales totalled EUR 193.8 million (166.7 million), an increase of 16.2%.
  • Like-for-like sales growth was 6.9%.
  • Adjusted EBITDA was EUR 33.8 (28.8) million, up by 17.4%.
  • Adjusted EBITDA margin was 17.4% (17.3%).
  • Adjusted EBITA was EUR 20.3 (18.3) million, up by 10.8%.
  • Adjusted EBITA margin was 10.5% (11.0%).
  • Operating profit increased by 7.7% to EUR 15.6 (14.5) million, representing 8.1% (8.7%) of net sales.
  • Profit for the period totalled EUR 10.6 (11.6) million.
  • Earnings per share, basic was EUR 0.32 (0.35)

The figures in parentheses 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.

EUR million or as indicated 1-3/2022 1-3/2021 Change % 10/2021-3/2022 10/2020-3/2021 Change % FY2021
Net sales 92.4 82.4 12.1% 193.8 166.7 16.2% 340.9
Net sales growth, % 12.1% 20.5% 16.2% 20.2% 19.9%
LFL sales growth, % 4.5% 11.6% 6.9% 12.3% 11.8%
LFL store sales growth, % 1.3% 8.6% 4.1% 8.3% 8.8%
Online share, % 23.6% 24.4% 22.5% 23.0% 23.1%
Gross margin, % 46.5% 45.3% 47.0% 45.7% 45.7%
EBITDA 14.0 13.1 6.5% 32.3 28.2 14.7% 56.9
EBITDA margin, % 15.1% 15.9% 16.7% 16.9% 16.7%
Adjusted EBITDA 14.0 13.1 6.5% 33.8 28.8 17.4% 58.8
Adjusted EBITDA margin, % 15.1% 15.9% 17.4% 17.3% 17.3%
EBITA 7.0 7.7 -9.2% 18.8 17.7 6.4% 34.9
EBITA margin, % 7.6% 9.3% 9.7% 10.6% 10.2%
Adjusted EBITA 7.0 7.7 -9.2% 20.3 18.3 10.8% 36.8
Adjusted EBITA margin, % 7.6% 9.3% 10.5% 11.0% 10.8%
Operating profit 5.4 6.1 -11.0% 15.6 14.5 7.7% 28.4
Operating profit margin, % 5.9% 7.4% 8.1% 8.7% 8.3%
Profit/loss for the period 3.8 3.8 -0.4% 10.6 11.6 -8.1% 20.9
Earnings per share, basic, EUR 0.11 0.11 0.32 0.35 0.62
Net cash flow from operating activities 5.3 14.0 -62.2% 18.5 29.9 -38.1% 54.9
Investments in tangible and intangible assets 3.6 3.1 16.7% 8.2 6.2 32.6% 12.9
Net debt / LTM adjusted EBITDA 2.2 1.9 12.1% 2.2 1.9 12.1% 1.9
Number of loyal customers, thousands 1,372 1,222 12.3% 1,372 1,222 12.3% 1,297
Number of stores at the end of the period 324 301 7.6% 324 301 7.6% 312
of which directly operated 303 247 22.7% 303 247 22.7% 280

CEO’s comments

Musti Group has performed well in the first half of the financial year.  I am proud of the team and their proactive agility and tenacity as we face the ever-changing external circumstances; our actions ensuring that we maintain momentum in the delivery of our long-term financial targets.  A very strong first quarter turned into a turbulent second quarter as, like others, we faced the fast-spreading Omicron COVID-19 variant, disruptions in global supply chains, rapidly accelerating inflation and more recently the terrible war in Ukraine. 

Notwithstanding these events, Musti posted its strongest ever second quarter, supporting half-year sales growth of 16.2% to EUR 193.8 million and adjusted EBITDA growth of 17.4% to EUR 33.8 million.  Store sales grew 21.3% in the first half of the financial year and have grown 27% through the first month of Q3.

It has been reported that the economy is suffering from declining consumer confidence with consumers tightening their spending.  In Musti’s case this impacted February and early March with the second half of March seeing a return to normal levels, continuing into April where we have seen strong sales growth of 18% over the comparison month in 2021 and 40% growth over the same period in 2020.

Our business is rather well shielded from increasing inflation. This is due to natural hedge from high portion of fixed costs, benefits of scale, relatively low dependence on scarce raw materials in the products we sell and most importantly, a high share of sales of own and exclusive products whose share increased during first half of the financial year supporting the expansion of our gross margin to 47.0% from 45.7% in the comparison period.

During the past months, Musti has increased its pace of store openings and franchise acquisitions, adding 56 directly operated stores since March 2021. This has burdened the result short-term, given the "j-curve effect” as store sales ramp, yet enabling the growth by strengthening the overall concept with services and benefits of the omnichannel further and bringing the capacity to reach our long-term financial plan as those stores mature. New stores are performing in line with expectations.

During the second quarter we reorganized our management team to reach even higher synergies in managing the business. I am confident that reorganizing and consolidating the management team duties together with the strong concept brings Musti Group possibilities both to reach scale effects and improve efficiency and to further enhance the customer focus orientation in all our markets.

Growth continued strong in the first half of the financial year:

  • Group net sales increased by 16.2% to EUR 193.8 million. The increase was largely due to the increasing number of customers together with an increased number of directly operated stores. Like-for-like growth amounted to 6.9%.
  • Store sales increased by 21.3% to EUR 147.6 million, driven by an increased number of stores and continued like-for-like store sales growth amounting to 4.1%.
  • Online sales increased by 13.9% to EUR 43.7 million. Online sales accounted for 22.5% (23.0%) of total net sales.

The development continued good in all the main indicators supporting our profitable growth:

  • We increased the number of our loyal customers by 12.3%. We continued to win more than our market share of the new puppies entering the market as loyal customers of Musti.
  • Rolling 12 months average spend per loyal customer levelled to EUR 186.6 as per 31 March 2022.
  • We are in good speed in the network expansion, as we added net 23 directly operated stores during the first half of the financial year to our network.
  • We increased the share of own and exclusive products to 53.0% (51.4%) during the first half of the financial year leading to a very strong gross margin development.

Group’s adjusted EBITA increased by 10.8% to EUR 20.3 million in the first half of the financial year. Adjusted EBITA was the best first half adjusted EBITA in Musti Group history driven by the strong first quarter. Adjusted EBITDA increased by 17.4% to EUR 33.8 million. The increase was a result of a strong season sales growth and improved gross margin. Gross margin increased to 47.0% (45.7%) mainly due to increased number of directly operated stores and favourable product mix. The positive development was slightly burdened by increasing freight costs, especially from Asia. Operating profit increased by 7.7% to EUR 15.6 million.

Overall, the momentum in our business is strong. We have proved the resilience of our business over and over again. Non-discretionary categories such as food, cat litter and veterinary services make up approximately 75% of total market spend and are characterized by repeat purchasing behaviour that is consistent through the cycle. Consumers display willingness to sustain spending on non-discretionary pet care purchases even while expenditure on alternative categories has been affected. Supported by our leading market position, strong customer focus and winning concept we remain confident and focused on the long-term strategy despite the near-term disruptions.

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 on 10 May 2022 at 14:00 EEST. The event will be held in English. The report will be presented by CEO David Rönnberg and CFO Toni Rannikko.

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

The telephone conference can be participated by calling:

Finland: +358 9 817 10310

Sweden: +46 856642651

UK: +44 3333000804

US: +1 6319131422

The participants will be asked to provide the following PIN code: 55729733#

Helsinki, 10 May 2022

Board of Directors

Further information:

David Rönnberg, CEO, tel. +46 70 896 6552

Toni Rannikko, CFO, tel. +358 40 078 8812                                                                                                                  

Essi Nikitin, Head of IR and Communications, tel +358 50 581 1455


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 341 million in the financial year 2021. At the end of the financial year 2021, the company had 1,397 employees, 1.3 million loyal customers and 312 stores.


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