Musti Group plc Interim Report 1 October 2021 – 31 December 2021

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Musti Group plc                Interim Report              8 February 2022 at 8:30 a.m. EET

Musti Group plc Interim Report 1 October 2021 – 31 December 2021

Record sales and EBITDA

October 2021 – December 2021

  • Group net sales totalled EUR 101.3 million (84.3 million), an increase of 20.2%.
  • Like-for-like sales growth was 9.2%.
  • Adjusted EBITDA was EUR 19.8 (15.7) million, up by 26.5%.
  • Adjusted EBITDA margin was 19.6% (18.6%).
  • Adjusted EBITA was EUR 13.3 (10.6) million, up by 25.4%.
  • Adjusted EBITA margin was 13.1% (12.6%).
  • Operating profit increased by 21.2% to EUR 10.2 (8.4) million, representing 10.1% (10.0%) of net sales.
  • Profit for the period totalled EUR 6.8 (7.8) million.
  • Earnings per share, basic was EUR 0.20 (0.24).
  • Number of stores grew to 320 (300).
  • Number of loyal customers grew to 1,340 thousand (1,189 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 10-12/2021 10-12/2020 Change % 10/2020-9/2021
Net sales 101.3 84.3 20.2% 340.9
Net sales growth, % 20.2% 19.9% 19.9%
LFL sales growth, % 9.2% 13.1% 11.8%
LFL store sales growth, % 6.6% 8.0% 8.8%
Online share, % 21.5% 21.6% 23.1%
Gross margin, % 47.5% 46.1% 45.7%
EBITDA 18.4 15.1 21.9% 56.9
Adjusted EBITDA 19.8 15.7 26.5% 58.8
Adjusted EBITDA margin, % 19.6% 18.6% 17.3%
EBITA 11.8 10.0 18.3% 34.9
Adjusted EBITA 13.3 10.6 25.4% 36.8
Adjusted EBITA margin, % 13.1% 12.6% 10.8%
Operating profit 10.2 8.4 21.2% 28.4
Operating profit margin, % 10.1% 10.0% 8.3%
Profit/loss for the period 6.8 7.8 -11.9% 20.9
Earnings per share, basic, EUR 0.20 0.24 -13.0% 0.62
Net cash flow from operating activities 12.7 15.9 -20.2% 54.9
Investments in tangible and intangible assets 10.2 4.6 126.4% 23.5
Net debt / LTM adjusted EBITDA 1.9 1.8 7.2% 1.9
Number of loyal customers, thousands 1,340 1,189 12.7% 1,297
Number of stores at the end of the period 320 300 6.7% 312
of which directly operated 294 242 21.5% 280

CEO’s comments

I couldn’t be happier to present the first quarter results today with record-breaking sales and profitability performance. December quarter proved our agility, resilience to global challenges and the strength of our concept in a difficult business environment colored by the supply chain challenges impacting global trade, and the new rapidly spreading wave of the COVID-19 variant. We managed to stay unaffected during the very important Christmas period, adapting our operations to be able to continue providing our segment leading levels of pet care to customers with an excellent availability of products on shelves and online.

Front end* continues to deliver with 20% growth in the first quarter. We are seeing better performance also in the back end** but our bar for excellence is high and there are yet many opportunities to reach. During the first quarter we had a comprehensive efficiency project ongoing in the Eskilstuna central warehouse and more widely the whole end-to-end supply chain, and the measures that have been taken are starting to bear fruit targeting scale effects going forward in the quarters to come. With over 40% 2-year growth and global supply chain issues, managing the volumes and securing availability has been priority and that has been a big success – we see clear opportunity to work on the cost base going forward for example in the procurement and group functions area through more process-oriented ways of working, automation and making sure our back-end scales well.

Growth was strong in the first quarter:

  • Group net sales increased by 20.2% to EUR 101.3 million (EUR 84.3 million). The increase was largely due to the increasing number of customers together with an increased number of directly operated stores. Like-for-like growth amounted to 9.2%.
  • Store sales increased by 24.9% to EUR 77.9 million (EUR 62.4 million), driven by an increased number of stores as we added net 14 directly operated stores to our network and continued like-for-like store sales growth amounting to 6.6%.
  • Online sales increased by 19.6% to EUR 21.8 million (EUR 18.2 million). Online sales accounted for 21.5% (21.6%) of total net sales in the first quarter

The development was good in all the main indicators supporting our profitable growth:

  • We increased the number of our loyal customers by 13%. What is most important, we continuously increase our proportion of the new puppies coming into the market and win close to 60% of the new puppies as our customers.
  • We grew the average spend per loyal customer to EUR 187.0 from 183.3 a year ago.
  • We are in good speed in the network expansion, as we added net 14 directly operated stores to our network during the first quarter. During Q1, five franchise stores were acquired in Sweden and we will continue the franchise acquisitions in Sweden according to the strategy.  The target is to increase the net number of directly operated stores by 30-35 stores during the financial year.
  • We increased the share of own and exclusive products to 53.6% during the quarter leading to a very strong gross margin development.

Group adjusted EBITA increased to EUR 13.3, up by 25.4%. The adjusted EBITDA increased by 26.5% to EUR 19.8 million and was the best quarterly adjusted EBITDA in Musti Group history. The increase in profit was supported by strong season sales growth and improved gross margin. Gross margin increased to 47.5% (46.1%) mainly due to increased number of directly operated stores and favorable product mix. The positive development was slightly burdened by increasing freight costs, especially from Asia. Operating profit increased by 21.2% to EUR 10.2 million.

I am very proud of the progress we are making. Our unique ability to combine a growing portfolio of products, services and advice into convenient propositions for Pet Parents is a key enabler of how we consistently outgrow the market in which we operate. I am sincerely grateful to all our employees across the Group for their tireless work and dedication. Employee satisfaction will be in the focus going forward too, and together we will continue to support and safeguard the furry everyday life of pet lovers in the Nordics and deliver according to our strategy for long-term profitable growth.

David Rönnberg,


*Front end = customer facing operations, stores and online **Back end = supply chain management and group functions 

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 on 8 February 2022 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 telephone conference can be participated by calling:

Finland: +358 981710310

Sweden: +46 856642651

UK: +44 3333000804

US: +1 6319131422

The participants will be asked to provide the following PIN code: 67531446#

Helsinki, 8 February 2022

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 341 million in the financial year 2021. At the end of the financial year 2021, the company had 1,397 employees, 1.3 million loyal customers and 312 stores.


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