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Musti Group plc Interim Report 1 October 2023 – 31 December 2023

Musti Group plc                                        Interim Report             31 January 2024 at 8:30 a.m. EEST

Musti Group plc Interim Report 1 October 2023 – 31 December 2023

Stable performance continues

October – December 2023    

  • Group net sales totaled EUR 115.7 (110.4) million, an increase of 4.8%.
  • Group net sales growth excluding the changes in the currency exchange rates was 8.7%.
  • Like-for-like sales growth was 4.8%.
  • Adjusted EBITDA was EUR 20.5 (19.1) million, up by 7.0%.
  • Adjusted EBITDA margin was 17.7% (17.3%).
  • Adjusted EBITA was EUR 12.4 (11.7) million, up by 6.1%.
  • Adjusted EBITA margin was 10.7% (10.6%).
  • Net cash flow from operating activities was EUR 15.7 (18.7) million, down by 16.1%.
  • Operating profit decreased by 7.1% to EUR 9.4 (10.1) million, representing 8.1% (9.2%) of net sales.
  • Profit for the period totaled EUR 5.8 (7.0) million.
  • Earnings per share, basic was EUR 0.17 (0.21).
  • Number of stores grew to 348 (340).
  • Number of loyal customers grew to 1,552 thousand (1,485 thousand).

Key Events

  • The Company has withdrawn three batches of SMAAK pet food following customer claims in November 2023. The high concentration of glycoalkaloids in a batch of imported potato flakes was identified as the reason for the symptoms caused by the withdrawn products. So far, the Company has incurred approximately EUR 0.8 million costs for the investigation of the matter, the product recall and the customer claims, for which the Company expects to receive at least partial insurance compensation.
  • Flybird Holding Oy, owned by Consortium formed by Sonae Holdings, S.A. (a subsidiary wholly-owned and controlled by Sonae – SGPS, S.A. ), Jeffrey David, Johan Dettel and David Rönnberg, and Musti Group Plc announced on 29 November 2023 that they have entered into a combination agreement, whereby the Offeror will make a recommended voluntary public cash tender offer for all the issued and outstanding shares in Musti that are not held by Musti or its subsidiaries at offer price of EUR 26.00 per share.
  • On 15 December 2023 Musti announced, that the offer period for the Tender Offer will commence on 18 December 2023, at 9:30 (Finnish time) and expire on 5 February 2024, at 16:00 (Finnish time), unless the offer period is extended as described in the terms and conditions of the Tender Offer.

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.

Key figures

EUR million or as indicated 10-12/2023 10-12/2022 Change % FY2023
Net sales 115.7 110.4 4.8% 425.7
Net sales growth, % 4.8% 8.9% 8.9%
LFL sales growth, % 4.8% 7.0% 9.5%
LFL store sales growth, % 2.5% 3.7% 6.7%
Online share, % 23.3% 22.2% 23.0%
Gross margin, % 45.9% 45.9% 45.7%
EBITDA 18.8 19.1 -1.6% 74.6
EBITDA margin, % 16.3% 17.3% 17.5%
Adjusted EBITDA 20.5 19.1 7.0% 73.6
Adjusted EBITDA margin, % 17.7% 17.3% 17.3%
EBITA 10.8 11.7 -7.9% 43.6
EBITA margin, % 9.3% 10.6% 10.2%
Adjusted EBITA 12.4 11.7 6.1% 42.6
Adjusted EBITA margin, % 10.7% 10.6% 10.0%
Operating profit 9.4 10.1 -7.1% 37.8
Operating profit margin, % 8.1% 9.2% 8.9%
Profit/loss for the period 5.8 7.0 -17.1% 26.5
Earnings per share, basic, EUR 0.17 0.21 -17.5% 0.79
Net cash flow from operating activities 15.7 18.7 -16.1% 79.6
Investments in tangible and intangible assets 4.0 3.0 33.6% 11.9
Net debt / LTM adjusted EBITDA 1.8 2.0 -10.0% 1.9
Number of loyal customers, thousands 1,552 1,485 4.5% 1,543
Number of stores at the end of the period 348 340 2.4% 342
of which directly operated 338 325 4.0% 330

“In a quarter disturbed by the SMAAK product recall and continuing consumer distress, Musti again highlighted the resilience of its format and the strength of commitment of our team delivering a quarter of stable performance.” – David Rönnberg, Musti Group CEO  

The quarter was far from ordinary for Musti. In November, a bad batch of potato flakes led to a recall of four items within the SMAAK brand and the announced ongoing tender offer had the potential to further disrupt team focus and application, yet again the team highlighted their commitment to our Pet Parents by not allowing either of these factors to impact the delivery of our customer service goals.

Notwithstanding these events, we continued our journey of profitable growth, emphasizing the strength of our business model and brand. The team again gave me reason to be proud of their achievements.

Sales growth and financial performance, given the circumstances were solid, supporting another quarter of strong cashflow. Net sales increased by 4.8% to EUR 115.7 million, growth in local currency excluding exchange rate impact was 8.7%. Adjusted EBITA increased by 6.1% to EUR 12.4 million affected negatively by EUR 0,6 million due to exchange rates. The increase in profitability was due to production integration, stable gross margin, tight cost control and continued efficiency in the central warehouse highlighting that the company continues to perform efficiently in this difficult and volatile operational environment.

During the quarter we successfully expanded the store network opening eight directly operated stores taking the total number of stores up to 348. We plan to continue to open 20 to 25 stores a year, primarily in Norway and Sweden.

Our online business continued to perform very well. Like-for-like online sales grew by 13% to EUR 26.9 million and accounted for 23.3% of total net sales. These numbers show that our online customers appreciate our broad offering and delivery options. 

The incident with SMAAK was a wake-up call not only for Musti, but for the pet food industry. At Musti we have improved our quality control processes and standards taking new measures to prevent such incidents going forward. I’m confident that our products will continue to meet the high demands of our customers and we are winning back the trust of those customers that were impacted by the recall.

As we move into Q2 our focus remains to deliver great value to our Pet Parents. Our ability to combine a growing portfolio of products, services, and advice into convenient propositions for Pet Parents is unique and will be the key enabler of future success. This will help us to continue to gain market share in our core markets and seek additional value creation opportunities that are practical and suitable for our business platform.

To our team members – on behalf of our shareholders, our Board, our Group management team and myself, thank you once again for your tireless commitment to support our customers and their pets.   

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 on 31 January 2024 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 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 2024

Board of Directors

The information in this Interim Report is unaudited.

Further Information:

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

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


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, 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 426 million in the financial year 2023. At the end of the financial year 2023, the company had 1,643 employees, 1.5 million loyal customers and 342 stores.


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