Back to media

Musti Group Plc Interim Report 1 October–31 December 2019

Musti Group Plc                        INTERIM REPORT                      3 March 2020, at 8:30 a.m. EET

Musti Group Plc Interim Report 1 October–31 December 2019

Profitable growth in all segments

October–December 2019

  • Group net sales totalled EUR 70.3 million (64.1 million), an increase of 9.7%.
  • Like-for-like sales growth was 7.7%.
  • Adjusted EBITA was EUR 7.8 (6.0) million, up by 30.0%.
  • Adjusted EBITA margin was 11.1% (9.3%).
  • Operating profit increased by 60.8% to EUR 5.4 (3.3) million, representing 7.7% (5.2%) of net revenue.
  • Profit for the period totalled EUR 3.7 (1.1) million.
  • Earnings per share was EUR 0.13 (0.04).
  • Number of stores grew to 281 (272 at 31 December 2018). Number of loyal customers grew to 1,052 thousand (917 thousand).

The figures in parenthesis refer to the comparison period, i.e. the same period in the previous year, unless stated otherwise.
Musti’s financial year is from 1 October to 30 September.

Key figures

EUR millions or as indicated Q1 10–12/19 Q1 10–12/18 Change % FY2019
Net sales 70.3 64.1 9.7 246.6
Net sales growth, % 9.7% 22.1%   14.1%
LFL sales growth, % 7.7% 10.2%   11.2%
LFL store sales growth, % 7.2% 6.5%   7.8%
Online share, % 19.5% 19.8%   20.7%
Gross margin, % 45.4% 44.5%   44.3%
EBITA 6.8 4.7 45.5 18.1
Adjusted EBITA 7.8 6.0 30.0 21.9
Adjusted EBITA margin, % 11.1% 9.3%   8.9%
Operating profit 5.4 3.3 60.8 12.5
Operating profit margin, % 7.7% 5.2%   5.1%
Profit/loss for the period 3.7 1.1 242.3 3.0
Earnings per share, basic and diluted, EUR 0.13 0.04   0.10
Cash flows from operating activities 14.7 14.8 -1.1 39.5
Investments 2.5 1.6 55.7 6.4
Gearing, % 123.6% 141.6%   135.4%
Net debt / LTM adjusted EBITDA 3.1 4.6   3.5
Number of loyal customers, thousands 1,052 917 14.6 1,018
Number of stores at the end of the period 281 272 3.3 277
of which directly operated 212 198 7.1 206



CEO’s comments
This interim report is an important milestone for us as it is our first one as a listed company. I am very proud of the work everyone at Musti Group has done in growing and developing the company from a strong Finnish retail concept into the leading Nordic pet care company.

We are pleased with Musti’s strong first quarter of the financial year 2020. Our net sales grew by 9.7 percent to EUR 70.3 million compared to the corresponding period last year. The growth was mainly driven by the increased number of customers. The strong performance showed especially in the like-for-like store sales growth of 7.2 percent. Our online growth was impacted by the planned online platform change of Peten Koiratarvike in Q1, but the investment is important for the further efficiency improvement of the group’s online operations. We also continued to develop our digital customer platform to increase the level of personalization of our customer communications.

Musti is focusing on profitable growth, supported by the scalable platform and efficient cost control. This work showed in profitability development in Q1 as our operating profit grew by 60.8 percent to EUR 5.4 million with an operating cash flow of EUR 14.7 million. The adjusted EBITA margin improved from 9.3 percent (Q1/19) to 11.1 percent driven by strong operating performance in Sweden. The adjusted EBITA margin is typically higher in Q1 than in other quarters.

All three segments – Finland, Sweden and Norway – showed strong like-for-like store sales growth and improved adjusted EBITA margins in Q1. We will continue to focus on further improving profitability in all countries, especially in Sweden and Norway.

At the end of the reporting period, Musti had 1,052 thousand loyal customers (917 thousand in Q1 2019). People are increasingly treating their dogs and cats like members of their family, and choosing more premium food, as well as a more diverse range of products and services. These “pet parents” prefer shopping at pet specialists like Musti. We aim to grow our market share by winning new customers with expert advice, high-quality offering and total shopping convenience.

During Q1, the positive market development continued and there were no significant changes in the competitive landscape. We expect the Nordic pet care market to grow steadily due to several favourable tailwinds, such as the pet parenting megatrend and the pet population growth. We believe that Musti is also set to benefit from global consumer megatrends like consumers’ desire for convenience, demand for services and focus on health and wellness.

Finally, I want to warmly welcome our more than 4,000 new shareholders to the next stage in Musti’s journey. Our shareholders and the capital raised in the IPO will further support the successful execution of our strategy during this financial year as well as in the coming years.

David Rönnberg


Financial targets and outlook
Musti Group does not publish its short-term outlook. However, Musti Group’s Board of Directors has set the following long-term financial targets:

Growth Sales to reach at least EUR 350 million by the financial year 2023
by continuation of strong customer acquisition momentum.
Profitability Mid- to long-term adjusted EBITA margin of 10-12 percent 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 percent of net profit. Any potential dividend shall take into account acquisitions, the company’s financial position, cash flow and future growth opportunities.

Press conference for analysts and media

A press conference for analysts and media, combined with a live webcast and international telephone conference, will be arranged on 3 March 2020 at 10:00 EET at Glo Hotel Kluuvi, Kluuvikatu 4, 00100 Helsinki, Finland. The event will be held in English. The report will be presented by CEO David Rönnberg and CFO Robert Berglund.

The press conference can also be followed through a live webcast at A recording of the webcast will be available later at the company’s website at

You can also participate in the news conference by calling:

FI: +358981710310
SE: +46 856642651
UK: +44 3333000804
US: +18558570686

The participants joining the news conference will be asked to provide the following PIN code: 20644217#

Helsinki, 2 March 2020
Board of Directors

Further information:
David Rönnberg, CEO, tel. +46 70 896 6552
Robert Berglund, CFO, tel. +358 50 534 8657

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 247 million in the financial year 2019. At the end of the financial year 2019, the company had 1,100 employees, over one million loyal customers and 277 stores.


Subscribe to Musti Group releases