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Musti Group plc Interim Report 1 October 2022 – 31 December 2022

Musti Group plc                Interim Report              31 January 2023 at 8:30 a.m. EET

Musti Group plc Interim Report 1 October 2022 – 31 December 2022

Record sales and cash flow

October – December 2022                         

  • Group net sales totaled EUR 110.4 (101.3) million, an increase of 8.9%.
  • Group net sales growth excluding the changes in the currency exchange rates was 13.1%
  • Like-for-like sales growth was 7.0%.
  • Adjusted EBITDA was EUR 19.1 (19.8) million, down by 3.5%.
  • Adjusted EBITDA margin was 17.3% (19.6%).
  • Adjusted EBITA was EUR 11.7 (13.3) million, down by 12.2%.
  • Adjusted EBITA margin was 10.6% (13.1%).
  • Net cash flow from operating activities was EUR 18.7 (13.2) million, up by 41.4%
  • Operating profit decreased by 0.8 % to EUR 10.1 (10.2) million, representing 9.2% (10.1%) of net sales.
  • Profit for the period totaled EUR 7.0 (6.8) million.
  • Earnings per share, basic was EUR 0.21 (0.20).
  • Number of stores grew to 340 (320).
  • Number of loyal customers grew to 1,485 thousand (1,340 thousand).

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 10-12/2022 10-12/2021 Change % FY2022
Net sales 110.4 101.3 8.9% 391.1
Net sales growth, % 8.9% 20.2% 14.7%
LFL sales growth, % 7.0% 9.2% 6.7%
LFL store sales growth, % 3.7% 6.6% 4.2%
Online share, % 22.2% 21.5% 22.2%
Gross margin, % 45.9% 47.5% 46.4%
EBITDA 19.1 18.4 4.2% 65.4
EBITDA margin, % 17.3% 18.2% 16.7%
Adjusted EBITDA 19.1 19.8 -3.5% 66.9
Adjusted EBITDA margin, % 17.3% 19.6% 17.1%
EBITA 11.7 11.8 -1.3% 37.3
EBITA margin, % 10.6% 11.7% 9.5%
Adjusted EBITA 11.7 13.3 -12.2% 38.8
Adjusted EBITA margin, % 10.6% 13.1% 9.9%
Operating profit 10.1 10.2 -0.8% 30.9
Operating profit margin, % 9.2% 10.1% 7.9%
Profit/loss for the period 7.0 6.8 3.0% 22.3
Earnings per share, basic, EUR 0.21 0.20 3.3% 0.67
Net cash flow from operating activities 18.7 13.2 41.4% 46.1
Investments in tangible and intangible assets 3.0 4.7 -35.4% 14.2
Net debt / LTM adjusted EBITDA 2.0 1.9 8.0% 2.1
Number of loyal customers, thousands 1,485 1,340 10.8% 1,454
Number of stores at the end of the period 340 320 6.3% 335
of which directly operated 325 294 10.5% 319

‘Taking market share in a challenging market’ – comments by the CEO David Rönnberg

I am pleased to report a healthy 13.1% growth in sales (FX neutral) to EUR 110.4 million incorporating 7.0% like-for-like growth in the first quarter of our financial year. On a two-year basis our stable growth continues at 31%. We also achieved a record high cash flow for the quarter, totaling EUR 18.7 million. The actions we have taken to optimize the net working capital are starting to bear fruit.

This is an excellent achievement especially when viewed against the very strong prior year period, and the challenging macroeconomic environment, where accelerating inflation and the exceptional headwinds of the weakening SEK and NOK vs the EURO continued to place incremental pressure on both our customers and us. 

The good performance is a result of hard work and the great Musti spirit in both back and front ends of the company, and I would like to express my sincere admiration to the team for their outstanding efforts and enthusiasm.

We increased the number of our loyal customers by 11% delivered by further increasing in our share of customers with new puppies.  By cooperating with high quality breeders in each of our markets we are able to actively engage with new puppy parents introducing them to the benefits of the Musti ecosystem with those efforts delivering an increase in new puppy food customers of 3% during October-December, compared to Swedish puppy registrations decreasing by 4.4% during the same period.

Approximately 70% of our products are non-discretionary products such as food and cat litter, characterized by repeat purchasing behavior that is consistent through a pet’s lifecycle. During the first quarter, customers continued to display willingness to sustain spending on non-discretionary pet care purchases and the sales of food and other consumables grew double-digit. Growth in the discretionary categories was affected by both slower expenditure on the categories and extremely high comparison figures from the year before.

Adjusted EBITDA was EUR 19.1 million in the first quarter, down by 3.5% compared to previous year. The decrease in profitability, compared to previous year’s record quarter, was due to lower sales of the discretionary items together with negative currency rate development leading to a lower gross margin than in the comparison period. The cost of group functions as a % of group net sales continued to improve and decreased to 7.5% (8.1%). The improvement was driven by the scalability achieved in the company head office and the central warehouse. 

Our long-term strategy and financial targets remain firm, as we are convinced that the trends like pet parenting supporting our business model will remain strong in the medium and long-term.  Further, our flexible and agile operations model enables us to constantly take needed actions so we can adapt quickly to any changes in consumer behavior and the external environment.

While macroeconomic factors are outside the company’s control, the business continues to show its resilience. We are monitoring the external conditions constantly and will not waste time in taking needed measures.

With a clear focus and high energy, we look forward to the financial year 2023 and opportunities it will bring to us.

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 webcast and a teleconference for analysts and media will be arranged today, 31 January 2023 at 14:00 EET.  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 teleconference can be accessed by registering at   After the registration, participants will be provided with phone numbers and a conference ID to access the conference. To ask a question, please dial *5 on your telephone keypad to enter the queue.

Helsinki, 31 January 2023

Board of Directors

The information in the Interim Report is unaudited.

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 391 million in the financial year 2022. At the end of the financial year 2022, the company had 1,587 employees, 1.5 million loyal customers and 335 stores.


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