Musti Group plc Interim Report 1 January 2025 – 31 March 2025
Musti Group plc Interim Report 21 May 2025 at 8:30 a.m. EET
Musti Group plc Interim Report 1 January 2025 – 31 March 2025
Musti started the financial year with strong growth in a slowly rebounding market
January – March 2025 highlights
- Group net sales totaled EUR 119.8 (107.2) million, which corresponds to an increase of 11.8% (5.5%), driven by the acquisition of Pet City and a rebound in the markets in the Nordics. Like-for-like sales growth was 2.4%.
- Adjusted EBITDA and EBITA were lower than last year due to a conscious decision to invest in market share through campaign activities.
- Adjusted EBITDA was EUR 12.7 (15.0) million and adjusted EBITDA margin was 10.6% (14.0%).
- Adjusted EBITA was EUR 2.7 (6.6) million and adjusted EBITA margin was 2.2% (6.1%).
- Net cash flow from operating activities was EUR 18.7 (7.2) million due to significantly lower non-recurring items.
- Operating result was EUR -0.1 (-5.2) million, result for the period EUR -3.5 (-4.8) million and Earnings per share basic was EUR -0.10 (-0.15). The improvement was attributable to significantly lower non-recurring items.
- Number of stores grew to 414 (344) mainly driven by the acquisition of Pet City.
- Total number of customers grew to 1,853 thousand (1,835 thousand) driven by actions taken to gain market share in the rebounding market.
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 calendar year.
“Musti continues to gain market share in a rebounding 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.” – David Rönnberg, Musti Group CEO
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 new 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 27.0 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 customers 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 integration 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 Board, our Group management team and myself, thank you again for your incredible effort!
David Rönnberg
CEO
Key figures
|
EUR million or as indicated |
1–3/2025 |
1–3/2024 |
Change % |
10/2023–12/2024 |
|
Net sales |
119.8 |
107.2 |
11.8% |
560.6 |
|
Net sales growth, % |
11.8% |
5.5% |
|
N/A |
|
LFL sales growth, % |
2.4% |
3.1% |
|
1.1% |
|
LFL store sales growth, % |
1.0% |
0.1% |
|
-1.6% |
|
Online share, % |
24.0% |
25.1% |
|
24.3% |
|
Gross margin, % |
42.5% |
43.9% |
|
44.1% |
|
EBITDA |
11.8 |
4.7 |
150.5% |
67.2 |
|
EBITDA margin, % |
9.9% |
4.4% |
|
12.0% |
|
Adjusted EBITDA |
12.7 |
15.0 |
-15.1% |
81.6 |
|
Adjusted EBITDA margin, % |
10.6% |
14.0% |
|
14.6% |
|
EBITA |
1.8 |
-3.7 |
147.1% |
23.6 |
|
EBITA margin, % |
1.5% |
-3.5% |
|
4.2% |
|
Adjusted EBITA |
2.7 |
6.6 |
-59.4% |
38.0 |
|
Adjusted EBITA margin, % |
2.2% |
6.1% |
|
6.8% |
|
Operating profit |
-0.1 |
-5.2 |
|
16.2 |
|
Operating profit margin, % |
0.0% |
-4.8% |
|
2.9% |
|
Profit/loss for the period |
-3.5 |
-4.8 |
|
|
|
Earnings per share, basic, EUR |
-0.10 |
-0.15 |
|
0.20 |
|
Net cash flow from operating activities |
18.7 |
7.2 |
160.4% |
46.9 |
|
Investments in tangible and intangible assets |
6.1 |
3.9 |
55.0% |
19.2 |
|
Net debt / LTM adjusted EBITDA |
3.2 |
1.9 |
69.2% |
3.1 |
|
Total number of customers, thousands |
1,853 |
1,835 |
1.0% |
1,866 |
|
Number of stores at the end of the period |
414 |
344 |
20.3% |
415 |
|
of which directly operated |
412 |
339 |
21.5% |
411 |
Webcast for analysts and media
A webcast for the analysts and media will be arranged on 21 May 2025 at 14:00 EEST 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 21 May 2025
Board of Directors
The information in this Interim Report is unaudited.
Further Information:
David Rönnberg, CEO, tel. +46 70 896 6552
Robert Berglund, CFO, tel. +358 50 534 8657
Distribution:
Nasdaq Helsinki
Principal 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 with an increasing footprint in the Baltic countries. Our omnichannel business model caters the needs of pets and their owners across Finland, Sweden, Norway and the Baltics. 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 444 million during the past 12 months (calendar year 2024). At the end of year 2024, the company had over 2,000 employees, 1.9 million customers and 415 stores.
