Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — H1 2023 Earnings Presentation
29 slides from Musti Group Oyj's earnings presentation, May 4, 2023
Slide 1: Half-Year Financial Report 1 October 2022–31 March 2023
Half-Year Financial Report 1 October 2022–31 March 2023 4 May 2023 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Solid first half of the financial year
Solid first half of the financial year 2
Slide 3: Summary of the first half of the financial year 2023
Summary of the first half of the financial year 2023 Net sales Growth excl. currency effects Like-for-like sales growth EUR 212.1m 14.2% 8.8% Own and exclusive brands Cash flow Directly operated store adds 53.0% EUR 28.4m +8 (+24 LTM) Loyalty club members growth Gross margin Adjusted EBITDA +10% 45.
Slide 4: Highlights Q2/23
Highlights Q2/23 • Group net sales totaled EUR 101.7 (92.4) million, an increase of 10.0%. • Group net sales growth excluding the changes in the currency exchange rates was 15.4%. • Like-for-like growth, which is calculated in local currencies, amounted to 10.8% (4.5%). • Adjusted EBITDA increased 1
Slide 5: Double digit growth continues in resilient food and consumables
Double digit growth continues in resilient food and consumables Discretionary categories deliver lower yet positive growth in tougher market conditions Q2/23 product sales mix Local currency growth Discretionary 25% 23% 20% Food 56% 15% Consumables 21% 10% • Food represents >50% of product sales wit
Slide 6: Online double digit growth continues after covid period
Online double digit growth continues after covid period Online sales EURm Online LFL, in local currency • Online channels 30 40% represent 23% of 36% sales in H1 35% 33% 25 31% • Strong covid 30% 28% channel shift from 20 Q2 FY20 25% 20% 20% • Double digit 15 20% 19% 18% online growth has 16% 14% 14
Slide 7: Q2 net sales grew 10.0% to EUR 101.7 million, FX neutral growth 15.4%
Q2 net sales grew 10.0% to EUR 101.7 million, FX neutral growth 15.4% Quarterly net sales, EUR million H1 net sales, EUR million Net sales: rolling 12 months 400 409 12.1% 15.5% 11.3% 8.9% 10.0% 12.7% 20.2% 16.2% 9.4% 391 381 368 212.1 110.4 15% 193.8 101.8 101.7 95.5 166.7 92.4 138.7 Q2/22 Q3/22 Q4
Slide 8: Growth 10% equivalent to 15% in constant currency, with 11% LFL
Growth 10% equivalent to 15% in constant currency, with 11% LFL 1Y growth LFL growth (local currency) FX rate impact on EUR sales growth, Q2 [H1] 21% 20% • Group: -5% [-5%] 20% 19% 20% 19% • Sweden: -8% [-8%] • Norway: -15% [-9%] 17% 16% 16% • Both SEK and NOK are at 15% historically weak levels 13%
Slide 9: Share of O&E products remained on a good level in Q2
Share of O&E products remained on a good level in Q2 • The share of sales of own and Gross margin % O&E % exclusive brands remained at a good level of 52.3% (52.2%). • Gross margin decreased to 45.1% 52.3% (46.5%). • Gross margin was severely hit by 45.1% unfavorable currency exchange rate developme
Slide 10: Acquisition of Premium Pet Food
Acquisition of Premium Pet Food – Musti responds to increased demand for locally and sustainably produced pet food Transaction • Full ownership of the petfood factory Premium Pet Food in Lieto, Finland from 3rd April 2023. Prior to the transaction, Musti Group held 49.2% of the shares. • Expected an
Slide 11: Group adjusted EBITDA increased 19.3% to EUR 16.6 million in Q2/23
Group adjusted EBITDA increased 19.3% to EUR 16.6 million in Q2/23 25.0 50.0 % H1 adjusted EBITDA, EUR million Quarterly adjusted EBITDA, EUR million 45.0 % 19.8 20.0 19.1 40.0 % 17.6 18% 35.8 17.2 16.6 35.0 % 33.8 15.7 15.6 15.0 28.8 15.0 14.0 30.0 % 13.1 12.9 12.0 11.2 25.0 % 21.9 9.9 10.0 20.0 %
Slide 12: Group adjusted EBITA increased 27.1% to EUR 8.9 million in Q2/23
Group adjusted EBITA increased 27.1% to EUR 8.9 million in Q2/23 Quarterly adjusted EBITA, EUR million H1 adjusted EBITA, EUR million • Group adjusted EBITA increased by 27.1% to EUR 8.9 (7.0) million. 14 16% • The increase was due to good traffic, price 11.7 20.3 20.6 increases mitigating the infla
Slide 13: Segments
Segments 13
Slide 14: Net sales in Finland increased by 10.9% to EUR 44.9 million in Q2
Net sales in Finland increased by 10.9% to EUR 44.9 million in Q2 Net sales, EUR million Quarterly adjusted EBITA, H1 adjusted EBITA, EUR million EUR million • Net sales in Finland increased by 10.9% to EUR 9.1% 13.3% 10.1% 8.5% 10.9% 20 19.4 44.9 (40.5) million. 9.9 18.4 47.6 10 9.5 17.7 • Sales gr
Slide 15: Net sales in Sweden increased by 7.2% to EUR 41.6 million in Q2
Net sales in Sweden increased by 7.2% to EUR 41.6 million in Q2, FX neutral growth 14.8% Net sales, EUR million Quarterly adjusted EBITA, H1 adjusted EBITA, EUR million EUR million 10 • Net sales in Sweden increased by 7.2% to EUR 41.6 8.9% 11.7% 7.0% 4.3% 7.2% 9 14.1 (38.8) million. 44.8 8 14.0 12.
Slide 16: Net sales in Norway increased by 15.5% to EUR 15.2 million
Net sales in Norway increased by 15.5% to EUR 15.2 million, FX neutral growth 30.5% Net sales, EUR million Quarterly adjusted EBITA, H1 adjusted EBITA, EUR million 4 EUR million 35.7% 37.6% 31.1% 23.7% 15.5% • Net sales in Norway increased by 15.5% to EUR 5.0 5.0 15.2 (13.1) million, driven by like-
Slide 17: Financial position
Financial position 17
Slide 18: Cash flow from operating activities increased to EUR 9.7 million in Q2
Cash flow from operating activities increased to EUR 9.7 million in Q2 • In Q2, the net cash flow from operating activities totaled EUR 9.7 (5.3) million. Increase in net working capital had an impact of EUR -2.8 (-8.9) million to the cash flow during the quarter. Cash flow from operating Gearing •
Slide 19: Group long-term financial targets unchanged
Group long-term financial targets unchanged Musti Group is well on track to reach the updated net sales and margin targets set in May 2021. Net sales to reach at least EUR 500 million by the financial year 2024 by Growth continuation of strong customer acquisition momentum and increasing share of wa
Slide 20: Summary
Summary • We increased sales in local currencies by 15.4% in the quarter. Like-for-like sales growth was 10.8%. • Food and consumables, that make up over 70% of our sales, remained strong sales pillars throughout the quarter. • We continue succeeding in winning new customers and increasing the stick
Slide 21: Thank you!
More information Interim Report for October 2022 – June 2023 will be David Rönnberg, CEO published on +46 70 896 6552 10 August 2023. david.ronnberg@mustigroup.com Toni Rannikko, CFO +358 40 078 8812 toni.rannikko@mustigroup.com Essi Nikitin, Head of IR and Communications +358 50 581 1455 essi.nikit
Slide 22: Appendix
Appendix 22
Slide 23: Musti is the only pan-Nordic omnichannel player in pet care
Musti is the only pan-Nordic omnichannel player in pet care Store and omnichannel banners complemented by leading pureplay brands Store rollout with increasing Underlying core footprint maturity business with steady growth Store Store banner banner = Owned (327) Omni = Franchised (15) .NO Omni banne
Slide 24: Musti Group – the leading Nordic pet care specialist
Musti Group – the leading Nordic pet care specialist Leading Nordic Wide loyalty program Omnichannel business pet care specialist 1.5 million loyal model2 #1 in Nordics, customers, unique rich 342 stores, 23.8% of net 25% market share1 data on Nordic pets and sales generated through Pet Parents onli
Slide 25: Musti offers the winning concept geared towards modern Pet Parents
Musti offers the winning concept geared towards modern Pet Parents Trusted expert advice High quality offering Omnichannel business model Growing suite of services • Diverse, high-quality offering • Seamless omnichannel • Hair and nail trimming • 93% of Musti’s staff are business model ensuring tota
Slide 26: Musti Group has 1.5 million loyal customers
Musti Group has 1.5 million loyal customers • The number of loyal customers increased by 10.1% to 1,511 thousand (1,372 thousand on 31 March 2022). • On 31 March 2023, Musti Group had 139 stores, 342 stores, of which 327 directly operated. all directly operated • In October 2022 – March 2023, share
Slide 27: Key figures
Key figures 10/2022- 10/2021- 1-3/2023 1-3/2022 Change % Change % EUR millions or as indicated 3/2023 3/2022 FY2022 Net sales 101.7 92.4 10.0% 212.1 193.8 9.4% 391.1 LFL sales growth, % 10.8% 4.5% 8.8% 6.9% 6.7% LFL store sales growth, % 9.0% 1.3% 6.2% 4.1% 4.2% Online share, % 23.8% 23.6% 22.9% 22.
Slide 28: Responsibility at Musti Group
Responsibility at Musti Group 28
Slide 29: 30-year track record – from traditional pet retail to full omnichannel
30-year track record – from traditional pet retail to full omnichannel 391 341 284 247 216 Net sales (EUR million) 170 145 • Concept development • eCommerce • Customer-centricity Operational platform and focus • Own brand products omni features • Leveraging customer data 78 103 25 FY1988 FY2010 FY20