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Musti Group plc Interim Report 1 October 2020 – 30 June 2021

Musti Group plc Interim Report              10 August 2021 at 8:30 a.m. EEST

Musti Group plc Interim Report 1 October 2020 – 30 June 2021

Continuing strong growth

April – June 2021

  • Group net sales totalled EUR 82.7 million (68.8 million), an increase of 20.2%.
  • Like-for-like sales growth was 11.6%.
  • Adjusted EBITA was EUR 7.3 (6.4) million, up by 13.3%.
  • Adjusted EBITA margin was 8.8% (9.3%).
  • Operating profit increased by 25.6% to EUR 5.3 (4.2) million, representing 6.4% (6.1%) of net sales.
  • Profit for the period totalled EUR 4.1 (4.9) million.
  • Earnings per share, basic was EUR 0.12 (0.14).
  • Number of stores grew to 308 (290).

October 2020 – June 2021

  • Group net sales totalled EUR 249.4 million (207.5 million), an increase of 20.2%.
  • Like-for-like sales growth was 12.1%.
  • Adjusted EBITA was EUR 25.6 (19.7) million, up by 29.6%.
  • Adjusted EBITA margin was 10.3% (9.5%).
  • Operating profit increased by 68.5% to EUR 19.8 (11.7) million, representing 7.9% (5.7%) of net sales.
  • Profit for the period totalled EUR 15.7 (5.9) million.
  • Earnings per share, basic was EUR 0.47 (0.19).
  • Number of stores grew to 308 (290).
  • Number of loyal customers grew to 1,257 thousand (1,107 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 4-6/2021 4-6/2020 Change % 10/2020-6/2021 10/2019-6/2020 Change % FY2020
Net sales 82.7 68.8 20.2 249.4 207.5 20.2 284.4
Net sales growth, % 20.2% 16.6% 20.2% 13.9% 15.3%
LFL sales growth, % 11.6% 11.5% 12.1% 11.2% 11.5%
LFL store sales growth, % 10.7% 4.3% 9.1% 7.1% 7.3%
Online share, % 24.1% 25.0% 23.4% 22.7% 22.5%
Gross margin, % 45.4% 42.6% 45.6% 43.8% 43.8%
EBITA 6.9 5.7 21.4 24.6 16.2 52.4 25.5
Adjusted EBITA 7.3 6.4 13.3 25.6 19.7 29.6 29.8
Adjusted EBITA margin, % 8.8% 9.3% 10.3% 9.5% 10.5%
Operating profit 5.3 4.2 25.6 19.8 11.7 68.5 19.6
Operating profit margin, % 6.4% 6.1% 7.9% 5.7% 6.9%
Profit/loss for the period 4.1 4.9 -15.1 15.7 5.9 168.3 11.8
Earnings per share, basic, EUR 0.12 0.14 -14.4 0.47 0.19 0.37
Net cash flow from operating activities *) 10.1 2.2 366.2 39.9 21.5 85.9 41.9
Investments in tangible and intangible assets 3.5 2.2 60.7 9.7 7.0 37.7 8.9
Net debt / LTM adjusted EBITDA 2.0 2.4 -18.6 2.0 2.4 -18.6 2.0
Number of loyal customers, thousands 1,257 1,107 13.5 1,257 1,107 13.5 1,151
Number of stores at the end of the period 308 290 6.0 308 290 6.0 293
of which directly operated 257 227 6.2 257 227 6.2 231

*) 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

The third quarter of the financial year 2021 demonstrated once again our ability to grow sustainably quarter after quarter with increasing gross margin and we are entering the post-pandemic environment in a position of strength. Even though facing the high comparison figures from previous year, group net sales growth was 20% together with excellent improvement in gross margin. All the important indicators supporting strong and sustainable growth are going into right direction; we are constantly winning new customers, the average spend is going upwards, customer satisfaction continues to stay on a high level and the share of sales of own and exclusive products is growing. We continue to support our customers in transitioning to a post-pandemic environment and the fundamentals of our business are constant: everything we do starts and ends with our customers. I am very pleased to report another successful quarter today:

  • Group net sales increased by 20.2% to EUR 82.7 million in Q3. The increase was largely due to like-for-like growth in all countries and the increasing number of new customers, together with an increased number of directly operated stores. Like-for-like growth amounted to 11.6% (11.5%).
  • Store sales increased by 23.8% to EUR 59.9 million, driven by an increased number of stores and strong like-for-like store sales growth in all countries. Like-for-like store sales growth was 10.7% (4.3%). Store sales growth in the comparison period was negatively impacted by restrictions relating to the COVID-19 pandemic.
  • Online sales increased by 15.8% to EUR 19.9 million. Online sales accounted for 24.1% (25.0%) of total net sales. In the comparison period, online sales growth was positively impacted by the channel shift towards online sales due to restrictions relating to the COVID-19 pandemic.
  • Net cash flow from operating activities was extremely strong and totaled EUR 10.1 million (EUR 2.2 million).

The Pet Parenting trend has been continuing strong, and the favorable trend in puppy registrations keeps getting stronger. Puppy registrations in Sweden were up again by 16% in June 2021 compared to corresponding month in 2020 and what is most important, the growth in Musti Group’s new puppy customers continues stronger than ever. In June 2021, we received an all-time high number of new puppy customers, an increase of 33% compared to the corresponding month previous year. Given the strong underlying market development, we are utilizing the momentum and investing heavily on sales growth to reach out to more new customers and to develop an ecosystem for Pet Parents to further increase attractiveness and customer loyalty. This reflects our strategy and supports the mid- and long-term financial targets, and we are well on track to reach the updated sales and margin targets set in May 2021. 

In June 2021 we successfully concluded negotiations with franchisees of all 16 stores operating under franchising agreement in Finland. After the transactions are finished in Q4 2021, all stores in Finland are directly operated. As a result of both strong organic growth and accelerated acquisitions, we have upgraded our estimate of increase in own directly operated stores to 45-55 stores during the financial year. The rapid store expansion, focusing on building a seamless ecosystem for the growing number of customers and strengthening the assortment of own and exclusive products has added costs in a short-term, but will pay back in the longer term.

The Group’s adjusted EBITA increased by 13.3% to EUR 7.3 million in Q3. The increase was due to sales growth. Adjusted EBITA margin was 8.8% (9.3%).  The comparison period’s cost structure was positively impacted by lower working hours in our stores and lower operating costs driven by the COVID-19 pandemic. This year, quarterly adjusted EBITA margin development was in line with periods prior to the COVID-19 pandemic, where Q3 has normally been the quarter with the lowest profitability driven by lower volume and margins. Adjusted EBITA was still negatively impacted by EUR 0.3 million by the low efficiency in Eskilstuna driven by the warehouse consolidation project that was executed in Q1 2021. However, the efficiency has improved as planned and is expected to normalize by the end of Q4. I am extremely pleased with the gross margin development. Gross margin increased to 45.4% (42.6%) as a result of lower share of online sales, more efficient marketing campaigns, favorable product mix and efficient supply chain management. Operating profit increased by 25.6% to EUR 5.3 million.

Adjusted EBITA margin increased to 12.4% in Sweden and 16.3% in Norway. In Finland, adjusted EBITA margin decreased slightly from the comparison period to 21.8%. However, especially in Finland, the comparison period was positively impacted by cost savings in relation to the COVID-19 pandemic, mainly caused by lower working hours. Hence, adjusted EBITA in Q3 2021 was more in line with periods prior to the COVID-19 pandemic.

Our focus remains on making the life of pets and their parents easier, safer and more fun. For the benefit of our customers, business and shareholders, we are determined to continuously improve our performance and do things a bit better every single day. Our personnel prove their expertise and genuine will to serve our customer in the best possible way every day, which I want to sincerely thank them all for.

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, 10 August 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: 88224383#

Helsinki, 10 August 2021

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                                                                                                                        

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


Nasdaq Helsinki
Main media

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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