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Strong profitable growth

Musti Group plc Interim Report 4 August 2020, at 8:30 a.m. EEST

Musti Group plc Interim Report 1 October 2019 – 30 June 2020
April – June 2020

  • Group net sales totalled EUR 68.8 million (59.0 million), an increase of 16.6%.
  • Like-for-like sales growth was 11.5%.
  • Adjusted EBITA was EUR 6.4 (4.2) million, up by 54.3%.
  • Adjusted EBITA margin was 9.3% (7.1%).
  • Operating profit increased by 113.3% to EUR 4.2 (2.0) million, representing 6.1% (3.3%) of net revenue.
  • Profit for the period totalled EUR 4.9 (-0.4) million.
  • Earnings per share was EUR 0.14 (-0.01).
  • Seven new directly operated stores were opened during Q3.

October 2019 – June 2020

  • Group net sales totalled EUR 207.5 million (182.1 million), an increase of 13.9%.
  • Like-for-like sales growth was 11.2%.
  • Adjusted EBITA was EUR 19.7 (14.9) million, up by 32.2%.
  • Adjusted EBITA margin was 9.5% (8.2%).
  • Operating profit increased by 52.1% to EUR 11.7 (7.7) million, representing 5.7% (4.2%) of net revenue.
  • Profit for the period totalled EUR 5.9 (0.8) million.
  • Earnings per share was EUR 0.19 (0.02).
  • Number of stores grew to 290 (274 at 30 June 2019).
  • Number of loyal customers grew to 1,107 thousand (949 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 million or as indicated 4-6/2020 4-6/2019 Change % 10/2019–6/2020 10/2018–6/2019 Change % FY2019
Net sales 68.8 59.0 16.6 207.5 182.1 13.9 246.6
Net sales growth, % 16.6% 9.6%   13.9% 13.5%   14.1%
LFL sales growth, % 11.5% 11.3%   11.2% 10.8%   11.2%
LFL store sales growth, % 4.3% 9.0%   7.1% 7.4%   7.8%
Online share, % 25.0% 21.3%   22.7% 20.9% 20.7%
Gross margin, % 42.6% 43.8%   43.8% 44.1% 44.3%
EBITA 5.7 3.4 69.7 16.2 11.8 36.6 18.1
Adjusted EBITA 6.4 4.2 54.3 19.7 14.9 32.2 21.9
Adjusted EBITA margin, % 9.3% 7.1%   9.5% 8.2% 8.9%
Operating profit 4.2 2.0 113.3 11.7 7.7 52.1 12.5
Operating profit margin, % 6.1% 3.3%   5.7% 4.2%   5.1%
Profit/loss for the period 4.9 -0.4 n.m. 5.9 0.8 676.5 3.0
Earnings per share, basic and diluted, EUR 0.14 -0.01   0.19 0.02   0.10
Net cash flow from operating activities 2.2 11.1 -79.8 21.7 29.5 -26.4 39.5
Investments 3.4 2.1 67.0 8.3 5.1 61.3 6.4
Gearing, % 73.3% 146.2%   73.3% 146.2%   135.4%
Net debt / LTM adjusted EBITDA 2.4 4.4 -44.5 2.4 4.4 -44.5 3.5
Number of loyal customers, thousands 1,107 979 13.0 1,107 979 13.0 1,018
Number of stores at the end of the period 290 274 5.8 290 274 5.8 277
of which directly operated 227 203 11.8 227 203 11.8 206


CEO’s comments

The impacts of COVID-19 have become increasingly evident during the third quarter of Musti’s financial year and the pandemic continues to severely affect people, businesses and societies. During the pandemic, our top priorities have been to keep our staff and customers safe and to maintain our ability to deliver high-quality support to our customers under exceptional circumstances.

These challenging societal and economic conditions have to date, however, proven the resilience of Musti’s business model and are very pleased with Musti’s third quarter of the financial year 2020:

  • Our net sales grew by 16.6% to EUR 68.8 million compared to the corresponding quarter last year. The increase was largely due to like-for-like growth of 11.5%, mainly driven by the increasing number of new customers joining our existing loyal customers.
  • Online sales increased by 36.7% and accounted for 25.0% of total net sales during the quarter. Online sales growth was boosted by a channel shift towards online due to the change in customer behaviour caused by the COVID-19 pandemic in all countries which started to normalize in June.
  • Store sales increased by 12.0% to EUR 48.4 million, driven by increased number of stores and strong like-for-like store sales growth in Sweden and Norway, offset by the impact of COVID-19 on selected stores. The impact of COVID-19 was strongest in Finland due to restrictions relating to shopping centers.
  • Musti’s underlying growth has continued strong after the third quarter.

The number of registered puppies grew by approximately 14% in Sweden in April – June 2020 compared to approximately 5% in January – March 2020. Finland and Norway have seen similar increases in the number of registered puppies. This growth in the number of registered puppies led to an increased demand for pet products and thus higher growth expectations for the market. In the third quarter we continued to focus on market share growth in all markets led by Sweden and Norway. To support this Musti will open altogether 20-25 new owned stores during the reporting year 2020.

Musti’s omnichannel business model combines the convenience of both store and online purchases. Stores provide an essential and convenient touch point and allow Pet Parents to explore products, receive trusted advice from Musti Experts and access pet services. The physical in-store offering is complemented by Musti’s online channel. Our strong omnichannel strategy and scalable platform have served us well, as we have seen a strong shift from stores to online channels due to the COVID-19 pandemic.

Musti is focusing on profitable growth, supported by its scalable, cost efficient platform. This work was evident in the profitability development in the third quarter as Musti Group’s adjusted EBITA increased by 54.3% to EUR 6.4 million from the corresponding quarter last year. The improvement was mainly due to an increase in sales combined with operating leverage. Sweden and Norway are approaching the profitability level of Finland faster than expected, adjusted EBITA margin increasing to 10.5% in Sweden and to 15.7% in Norway in the third quarter. In Finland, adjusted EBITA margin increased to 22.9%. Operating profit increased 113% to EUR 4.2 million in the third quarter.

The pet care market has proven to be resilient to economic downturns in the past. During the COVID-19 pandemic, the resilience of our business, comparable to grocery stores, has, to date, been apparent. We will continue to take the appropriate operational actions required during these times as we continue to serve our customers according to their channel preference, win new customers and keep our staff and customers safe.

We believe the trends driving the pet care market, coming from the pet parenting megatrend of the humanization of pets, coupled with increased pet population growth, will continue to underpin strong market growth. This increased demand gives us more opportunity to grow market share utilizing our channel agnostic omnichannel business model and allows us to reach even more customers enabling us to continue developing our value proposition to better serve our customers in the Nordic markets.

I want to thank everyone at Musti for their dedication and efforts during this difficult time. I am extremely grateful for the agility and commitment our employees demonstrated towards our customers through the challenging times. Our mission is to make the life of pets and their parents easier, safer and more fun, and the effort of our team have enabled us to do that even under these exceptional circumstances.

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 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.

Press conference for analysts and media

A live webcast for analysts and media will be arranged today, 4 August 2020 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 9 81710310

Sweden +46 8 56642651

UK: +44 3333000804

US: +1 6319131422

The participants will be asked to provide the following PIN code: 32193534#.


Helsinki, 4 August 2020

Board of Directors

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 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.


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