MUSTI GROUP OYJ Strong growth with best-ever quarterly EBITA
July -
- Group net sales totaled
EUR 91.5 million (76.9 million), an increase of 18.9%. - Like-for-like sales growth was 10.9%.
-
Adjusted EBITA was
EUR 11.2 (10.1) million, up by 11.2%. - Adjusted EBITA margin was 12.2% (13.1%).
-
Operating profit increased by 10.0% to
EUR 8.6 (7.8) million, representing 9.4% (10.2%) of net sales. -
Profit for the period totaled
EUR 5.2 (5.9) million. -
Earnings per share, basic was
EUR 0.16 (0.18). - Number of stores grew to 312 (293).
- Group net sales totaled
EUR 340.9 million (284.4 million), an increase of 19.9%. - Like-for-like sales growth was 11.8%.
-
Adjusted EBITA was
EUR 36.8 (29.8) million, up by 23.4%, offset by additional costs ofEUR 1.5 million due the warehouse consolidation project that was executed in Q1. - Adjusted EBITA margin was 10.8% (10.5%).
-
Operating profit increased by 45.1% to
EUR 28.4 (19.6) million, representing 8.3% (6.9%) of net sales. -
Profit for the period totaled
EUR 20.9 (11.8) million. -
Earnings per share, basic was
EUR 0.62 (0.37). - Number of stores grew to 312 (293).
- Number of loyal customers grew to 1,297 thousand (1,151 thousand).
-
The Board of Directors proposes to the AGM that shareholders will be paid a capital return of
EUR 0.44 per share.
The figures in parenthesis refer to the comparison period, i.e. the same period in the previous year, unless stated otherwise.
Key figures
| EUR million or as indicated | 7-9/2021 | 7-9/2020 | Change % | 10/2020-9/2021 | 10/2019-9/2020 | Change % |
| Net sales | 91.5 | 76.9 | 18.9 | 340.9 | 284.4 | 19.9 |
| Net sales growth, % | 18.9% | 19.2% | 19.9% | 15.3% | ||
| LFL sales growth, % | 10.9% | 12.2% | 11.8% | 11.5% | ||
| LFL store sales growth, % | 8.2% | 7.9% | 8.8% | 7.3% | ||
| Online share, % | 22.3% | 22.1% | 23.1% | 22.5% | ||
| Gross margin, % | 45.7% | 44.0% | 45.7% | 43.8% | ||
| EBITA | 10.3 | 9.4 | 9.4 | 34.9 | 25.5 | 36.6 |
| Adjusted EBITA | 11.2 | 10.1 | 11.2 | 36.8 | 29.8 | 23.4 |
| Adjusted EBITA margin, % | 12.2% | 13.1% | 10.8% | 10.5% | ||
| Operating profit | 8.6 | 7.8 | 10.0 | 28.4 | 19.6 | 45.1 |
| Operating profit margin, % | 9.4% | 10.2% | 8.3% | 6.9% | ||
| Profit/loss for the period | 5.2 | 5.9 | -12.1 | 20.9 | 11.8 | 77.8 |
| Earnings per share, basic, EUR | 0.16 | 0.18 | -12.2 | 0.62 | 0.37 | 69.0 |
| Net cash flow from operating activities *) | 15.0 | 20.4 | -26.3 | 54.9 | 41.9 | 31.3 |
| Investments in tangible and intangible assets | 3.2 | 1.9 | 70.1 | 12.9 | 8.9 | 44.5 |
| Net debt / LTM adjusted EBITDA | 1.9 | 2.0 | -2.3 | 1.9 | 2.0 | -2.3 |
| Adjusted EBITDA | 17.2 | 15 | 14.6 | 58.8 | 48.1 | 22.4 |
| Number of loyal customers, thousands | 1,297 | 1,151 | 12.6 | 1,297 | 1,151 | 12.6 |
| Number of stores at the end of the period | 312 | 293 | 6.5 | 312 | 293 | 6.5 |
| of which directly operated | 280 | 231 | 21.2 | 280 | 231 | 21.2 |
*) Interest and other finance income received has been reclassified from net cash flow operating activities to net cash flow from financing activities.
CEO's comments
On behalf of the
We achieved our strongest EBITA growth; accelerated our two-year like-for-like sales growth from 31% to 42%; gained market share in all markets; acquired a record number of new customers, including the parents of more than 50% of puppies welcomed into families and did so while increasing our gross margin. It highlights that our growth investments are paying off in the front end, supporting our short- and long-term growth goals. We will not let it stop there though. We continue to seek ways to improve our customer experience and value proposition, with a key opportunity being to improve the performance of our back end, specifically supply chain. During the year we commenced the next phase of our warehouse consolidation project and it has not proceeded as quickly as we had planned and has burdened our full year result, impacting EBITA by approximately
We are excited about what financial year 2022 holds seeing great opportunities for continued growth coupled with efficiency gains from the firm actions that we have and are taking.
The September quarter delivered strong quarterly growth development:
- Group net sales increased by 18.9% to
EUR 91.5 million in Q4. The increase was largely due to like-for-like growth in all countries and the increasing number of new customers together with an increased number of directly operated stores. Like-for-like growth amounted to 10.9%.
-
Store sales increased by 21.7% to
EUR 68.6 million , driven by the increased number of stores and strong like-for-like store sales growth in all countries. Like-for-like store sales growth amounted to 8.2% (7.9%). Store sales growth in the comparison period were negatively impacted by restrictions relating to the COVID-19 pandemic.
-
Online sales increased by 20.4% to
EUR 20.4 million . Online sales accounted for 22.3% (22.1%) of total net sales in the fourth quarter.
All the important indicators supporting our growth are going into right direction.
- We increased the number of our loyal customers by 13%. This was supported by the continuous increase in puppy registrations in the Nordics and us winning more than our market share of the new puppies by actively engaging the new puppy parents to
Musti ecosystem and putting effort on the cooperation with the breeders. -
We grew the average spend per loyal customer by 5% to
EUR 188.3 . - We overdelivered network expansion increasing the number of own directly operated stores by 49 stores
- Our Net Promoting Score measuring customer satisfaction has remained on an excellent level.
- We increased the share of own and exclusive products leading to a very strong gross margin development.
Supported by the strong sales growth, Group's adjusted EBITA increased by 11.2% to
I am extremely pleased with the gross margin development in Q4. Gross margin increased to 45.7% (44.0%) even though slightly burdened by increasing freight costs from
I want to sincerely thank all of our employees for the great engagement with serving our customers in the best possible way. I look forward to the financial year 2022 with a great deal of confidence, based both on the positive signals we see in the market and on the positive energy within the organization. We are excited to develop our ecosystem to further increase the customer experience. We strongly believe the end-to-end ecosystem presents a unique value proposition enhancing and strengthening sticky customer relationships and differentiating us from the competitors. The aim is to create a one-stop-shop for the customers - all you need is
David Rönnberg,
CEO
Financial targets
The long-term financial targets updated by the Board of Directors on
| Growth |
Net sales to reach at least |
| 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
A recording of the webcast will be available later at the company's website at www.mustigroup.com/investors/reports-and-presentations/.
The telephone conference can be participated by calling:
US: +1 6319131422
The participants will be asked to provide the following PIN code: 67350102#
Board of Directors
The information in this Financial Statements Release is unaudited.
Further information:
David Rönnberg, CEO, tel. +46 70 896 6552
Essi Nikitin, Head of
Distribution:
Nasdaq Helsinki
Main media
www.mustigroup.com
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.
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