Solid first half - on track with the long-term targets
January -
- Group net sales totalled
EUR 92.4 million (82.4 million), an increase of 12.1%. - Like-for-like sales growth was 4.5%.
-
Adjusted EBITDA was
EUR 14.0 (13.1) million, up by 6.5%. - Adjusted EBITDA margin was 15.1% (15.9%).
-
Adjusted EBITA was
EUR 7.0 (7.7) million, down by 9.2%. - Adjusted EBITA margin was 7.6% (9.3%).
-
Operating profit decreased by 11.0% to
EUR 5.4 (6.1) million, representing 5.9% (7.4%) of net sales. -
Profit for the period totalled
EUR 3.8 (3.8) million. -
Earnings per share, basic was
EUR 0.11 (0.11). - Number of stores grew to 324 (301).
- Number of loyal customers grew to 1,372 thousand (1,222 thousand).
- Group net sales totalled
EUR 193.8 million (166.7 million), an increase of 16.2%. - Like-for-like sales growth was 6.9%.
-
Adjusted EBITDA was
EUR 33.8 (28.8) million, up by 17.4%. - Adjusted EBITDA margin was 17.4% (17.3%).
-
Adjusted EBITA was
EUR 20.3 (18.3) million, up by 10.8%. - Adjusted EBITA margin was 10.5% (11.0%).
-
Operating profit increased by 7.7% to
EUR 15.6 (14.5) million, representing 8.1% (8.7%) of net sales. -
Profit for the period totalled
EUR 10.6 (11.6) million. -
Earnings per share, basic was
EUR 0.32 (0.35)
The figures in parentheses refer to the comparison period, i.e., the same period in the previous year, unless stated otherwise.
EUR million or as indicated | 1-3/2022 | 1-3/2021 | Change % | 10/2021-3/2022 | 10/2020-3/2021 | Change % | FY2021 |
Net sales | 92.4 | 82.4 | 12.1% | 193.8 | 166.7 | 16.2% | 340.9 |
Net sales growth, % | 12.1% | 20.5% | 16.2% | 20.2% | 19.9% | ||
LFL sales growth, % | 4.5% | 11.6% | 6.9% | 12.3% | 11.8% | ||
LFL store sales growth, % | 1.3% | 8.6% | 4.1% | 8.3% | 8.8% | ||
Online share, % | 23.6% | 24.4% | 22.5% | 23.0% | 23.1% | ||
Gross margin, % | 46.5% | 45.3% | 47.0% | 45.7% | 45.7% | ||
EBITDA | 14.0 | 13.1 | 6.5% | 32.3 | 28.2 | 14.7% | 56.9 |
EBITDA margin, % | 15.1% | 15.9% | 16.7% | 16.9% | 16.7% | ||
Adjusted EBITDA | 14.0 | 13.1 | 6.5% | 33.8 | 28.8 | 17.4% | 58.8 |
Adjusted EBITDA margin, % | 15.1% | 15.9% | 17.4% | 17.3% | 17.3% | ||
EBITA | 7.0 | 7.7 | -9.2% | 18.8 | 17.7 | 6.4% | 34.9 |
EBITA margin, % | 7.6% | 9.3% | 9.7% | 10.6% | 10.2% | ||
Adjusted EBITA | 7.0 | 7.7 | -9.2% | 20.3 | 18.3 | 10.8% | 36.8 |
Adjusted EBITA margin, % | 7.6% | 9.3% | 10.5% | 11.0% | 10.8% | ||
Operating profit | 5.4 | 6.1 | -11.0% | 15.6 | 14.5 | 7.7% | 28.4 |
Operating profit margin, % | 5.9% | 7.4% | 8.1% | 8.7% | 8.3% | ||
Profit/loss for the period | 3.8 | 3.8 | -0.4% | 10.6 | 11.6 | -8.1% | 20.9 |
Earnings per share, basic, EUR | 0.11 | 0.11 | 0.32 | 0.35 | 0.62 | ||
Net cash flow from operating activities | 5.3 | 14.0 | -62.2% | 18.5 | 29.9 | -38.1% | 54.9 |
Investments in tangible and intangible assets | 3.6 | 3.1 | 16.7% | 8.2 | 6.2 | 32.6% | 12.9 |
Net debt / LTM adjusted EBITDA | 2.2 | 1.9 | 12.1% | 2.2 | 1.9 | 12.1% | 1.9 |
Number of loyal customers, thousands | 1,372 | 1,222 | 12.3% | 1,372 | 1,222 | 12.3% | 1,297 |
Number of stores at the end of the period | 324 | 301 | 7.6% | 324 | 301 | 7.6% | 312 |
of which directly operated | 303 | 247 | 22.7% | 303 | 247 | 22.7% | 280 |
CEO's comments
Notwithstanding these events,
It has been reported that the economy is suffering from declining consumer confidence with consumers tightening their spending. In Musti's case this impacted February and early March with the second half of March seeing a return to normal levels, continuing into April where we have seen strong sales growth of 18% over the comparison month in 2021 and 40% growth over the same period in 2020.
Our business is rather well shielded from increasing inflation. This is due to natural hedge from high portion of fixed costs, benefits of scale, relatively low dependence on scarce raw materials in the products we sell and most importantly, a high share of sales of own and exclusive products whose share increased during first half of the financial year supporting the expansion of our gross margin to 47.0% from 45.7% in the comparison period.
During the past months,
During the second quarter we reorganized our management team to reach even higher synergies in managing the business. I am confident that reorganizing and consolidating the management team duties together with the strong concept brings
Growth continued strong in the first half of the financial year:
- Group net sales increased by 16.2% to
EUR 193.8 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 6.9%. -
Store sales increased by 21.3% to
EUR 147.6 million , driven by an increased number of stores and continued like-for-like store sales growth amounting to 4.1%. -
Online sales increased by 13.9% to
EUR 43.7 million . Online sales accounted for 22.5% (23.0%) of total net sales.
The development continued good in all the main indicators supporting our profitable growth:
- We increased the number of our loyal customers by 12.3%. We continued to win more than our market share of the new puppies entering the market as loyal customers of
Musti . -
Rolling 12 months average spend per loyal customer levelled to
EUR 186.6 as per31 March 2022 . - We are in good speed in the network expansion, as we added net 23 directly operated stores during the first half of the financial year to our network.
- We increased the share of own and exclusive products to 53.0% (51.4%) during the first half of the financial year leading to a very strong gross margin development.
Group's adjusted EBITA increased by 10.8% to
Overall, the momentum in our business is strong. We have proved the resilience of our business over and over again. Non-discretionary categories such as food, cat litter and veterinary services make up approximately 75% of total market spend and are characterized by repeat purchasing behaviour that is consistent through the cycle. Consumers display willingness to sustain spending on non-discretionary pet care purchases even while expenditure on alternative categories has been affected. Supported by our leading market position, strong customer focus and winning concept we remain confident and focused on the long-term strategy despite the near-term disruptions.
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
The webcast can be followed at https://mustigroup.videosync.fi/2022-q2-results. 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: 55729733#
Board of Directors
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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