Stable performance continues
October -
- Group net sales totaled
EUR 115.7 (110.4) million, an increase of 4.8%. - Group net sales growth excluding the changes in the currency exchange rates was 8.7%.
- Like-for-like sales growth was 4.8%.
-
Adjusted EBITDA was
EUR 20.5 (19.1) million, up by 7.0%. - Adjusted EBITDA margin was 17.7% (17.3%).
-
Adjusted EBITA was
EUR 12.4 (11.7) million, up by 6.1%. - Adjusted EBITA margin was 10.7% (10.6%).
-
Net cash flow from operating activities was
EUR 15.7 (18.7) million, down by 16.1%. -
Operating profit decreased by 7.1% to
EUR 9.4 (10.1) million, representing 8.1% (9.2%) of net sales. -
Profit for the period totaled
EUR 5.8 (7.0) million. -
Earnings per share, basic was
EUR 0.17 (0.21). - Number of stores grew to 348 (340).
- Number of loyal customers grew to 1,552 thousand (1,485 thousand).
Key Events
- The Company has withdrawn three batches of SMAAK pet food following customer claims in
November 2023 . The high concentration of glycoalkaloids in a batch of imported potato flakes was identified as the reason for the symptoms caused by the withdrawn products. So far, the Company has incurred approximatelyEUR 0.8 million costs for the investigation of the matter, the product recall and the customer claims, for which the Company expects to receive at least partial insurance compensation. Flybird Holding Oy , owned by Consortium formed bySonae Holdings, S.A. (a subsidiary wholly-owned and controlled bySonae - SGPS, S.A. ),Jeffrey David , Johan Dettel and David Rönnberg, andMusti Group Plc announced on29 November 2023 that they have entered into a combination agreement, whereby the Offeror will make a recommended voluntary public cash tender offer for all the issued and outstanding shares inMusti that are not held byMusti or its subsidiaries at offer price ofEUR 26.00 per share.-
On
15 December 2023 Musti announced, that the offer period for the Tender Offer will commence on18 December 2023 , at 9:30 (Finnish time) and expire on5 February 2024 , at 16:00 (Finnish time), unless the offer period is extended as described in the terms and conditions of the Tender Offer.
The figures in parentheses refer to the comparison period, i.e., the same period in the previous year, unless stated otherwise.
Key figures
EUR million or as indicated | 10-12/2023 | 10-12/2022 | Change % | FY2023 |
Net sales | 115.7 | 110.4 | 4.8% | 425.7 |
Net sales growth, % | 4.8% | 8.9% | 8.9% | |
LFL sales growth, % | 4.8% | 7.0% | 9.5% | |
LFL store sales growth, % | 2.5% | 3.7% | 6.7% | |
Online share, % | 23.3% | 22.2% | 23.0% | |
Gross margin, % | 45.9% | 45.9% | 45.7% | |
EBITDA | 18.8 | 19.1 | -1.6% | 74.6 |
EBITDA margin, % | 16.3% | 17.3% | 17.5% | |
Adjusted EBITDA | 20.5 | 19.1 | 7.0% | 73.6 |
Adjusted EBITDA margin, % | 17.7% | 17.3% | 17.3% | |
EBITA | 10.8 | 11.7 | -7.9% | 43.6 |
EBITA margin, % | 9.3% | 10.6% | 10.2% | |
Adjusted EBITA | 12.4 | 11.7 | 6.1% | 42.6 |
Adjusted EBITA margin, % | 10.7% | 10.6% | 10.0% | |
Operating profit | 9.4 | 10.1 | -7.1% | 37.8 |
Operating profit margin, % | 8.1% | 9.2% | 8.9% | |
Profit/loss for the period | 5.8 | 7.0 | -17.1% | 26.5 |
Earnings per share, basic, EUR | 0.17 | 0.21 | -17.5% | 0.79 |
Net cash flow from operating activities | 15.7 | 18.7 | -16.1% | 79.6 |
Investments in tangible and intangible assets | 4.0 | 3.0 | 33.6% | 11.9 |
Net debt / LTM adjusted EBITDA | 1.8 | 2.0 | -10.0% | 1.9 |
Number of loyal customers, thousands | 1,552 | 1,485 | 4.5% | 1,543 |
Number of stores at the end of the period | 348 | 340 | 2.4% | 342 |
of which directly operated | 338 | 325 | 4.0% | 330 |
"In a quarter disturbed by the SMAAK product recall and continuing consumer distress,
The quarter was far from ordinary for
Notwithstanding these events, we continued our journey of profitable growth, emphasizing the strength of our business model and brand. The team again gave me reason to be proud of their achievements.
Sales growth and financial performance, given the circumstances were solid, supporting another quarter of strong cashflow. Net sales increased by 4.8% to
During the quarter we successfully expanded the store network opening eight directly operated stores taking the total number of stores up to 348. We plan to continue to open 20 to 25 stores a year, primarily in
Our online business continued to perform very well. Like-for-like online sales grew by 13% to
The incident with SMAAK was a wake-up call not only for
As we move into Q2 our focus remains to deliver great value to our Pet Parents. Our ability to combine a growing portfolio of products, services, and advice into convenient propositions for Pet Parents is unique and will be the key enabler of future success. This will help us to continue to gain market share in our core markets and seek additional value creation opportunities that are practical and suitable for our business platform.
To our team members - on behalf of our shareholders, our Board, our Group management team and myself, thank you once again for your tireless commitment to support our customers and their pets.
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 webcast and a teleconference for analysts and media will be arranged on
The webcast can be followed at https://mustigroup.videosync.fi/2024-q1-results. A recording of the webcast will be available later at the company's website at www.mustigroup.com/investors/reports-and-presentations.
The teleconference can be accessed by registering at http://palvelu.flik.fi/teleconference/?id=10012559.
After the registration, participants will be provided with phone numbers and a conference ID to access the conference. To ask a question, please dial *5 on your telephone keypad to enter the queue.
Board of Directors
The information in this Interim Report is unaudited.
Further Information:
David Rönnberg, CEO, tel. +46 70 896 6552
Distribution:
Nasdaq Helsinki
Principal 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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