Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — H1 2022 Earnings Presentation
28 slides from Musti Group Oyj's earnings presentation, May 10, 2022
Slide 1: Half-Year Financial Report 1 October 2021–31 March 2022
Half-Year Financial Report 1 October 2021–31 March 2022 10 May 2022 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Solid first half – on track with the long-term targets
Solid first half – on track with the long-term targets 2
Slide 3: Solid first half – on track with the long-term targets
Solid first half – on track with the long-term targets • Group net sales increased 16.2% in H1 to EUR 193.8 million (166.7 million). In Q2, group net sales totaled EUR 92.4 million (82.4 million), an increase of 12.1%. • Like-for-like sales growth was 6.9% in H1 and 4.5% in Q2. • In H1 adjusted EBIT
Slide 4: Musti growth trend is steady
Musti growth trend is steady Net sales: rolling 12 months 358 368 326 341 312 Quarterly net sales, EUR million H1 net sales, EUR million 18% 20.5% 20.2% 18.9% 20.2% 12.1% 15.5% 12.7% 20.2% 16.2% 194 101.3 16% 167 91.5 92.4 139 123 82.4 82.7 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 % LTM growth Q2/21 – Q2/22 Ne
Slide 5: Weaker consumer confidence affected Q2 demand temporarily, from mid-March saw a return to normal levels
Weaker consumer confidence affected Q2 demand temporarily, from mid-March saw a return to normal levels Group net sales growth, 1-year basis Group net sales growth, 2-year basis 25% 50% 44% 42% 19% 20% 21% 20% 20% 40% 40% 40% 20% 19% 40% 18% 35% 35% 16% 17% 32% 31% 31% 15% 30% 28% 12% 10% 10% 20% 5%
Slide 6: Gross margin and share of O&E products are strong
Gross margin and share of O&E products are strong Gross margin % O&E share of sales % 48% 55% • Gross margin increased to 47.5 % 46.5% (45.3%) in Q2 54% 53.6 % 47% 46.5 % • Growth in gross margin was a 53% result of: 52.2 % 46% - Increased share of sales 52% of O&E products 45% 51% - Successful camp
Slide 7: Group adjusted EBITDA increased to EUR 33.8 million in H1/22
Group adjusted EBITDA increased to EUR 33.8 million in H1/22 25.0 50.0 % Quarterly adjusted EBITDA, EUR million H1 adjusted EBITDA, EUR million 45.0 % 19.8 17% 20.0 40.0 % 17.2 35.0 % 33.8 15.7 15.0 22% 28.8 15.0 14.0 30.0 % 13.1 12.9 12.0 11.1 11.2 25.0 % 21.9 9.9 9.9 18.8 10.0 8.8 8.2 19.5% 19.6%
Slide 8: Building future growth
Building future growth Omnichannel business model: 105x new stores in 3 years combined with 23% of sales generated online Greenfield stores ramp-up, €m Sales 1.1 Contribution 0.3 21% CAGR Net adds last 3 years Annual growth last 3 years Y1 Y2 Y3 Mature Network expansion of 105x over 3 years 67 store
Slide 9: Group adjusted EBITA increased to EUR 20.3 million in H1/22
Group adjusted EBITA increased to EUR 20.3 million in H1/22 Quarterly adjusted EBITA, EUR million H1 adjusted EBITA, EUR million • Group’s adjusted EBITA decreased by 9.2% 11% to EUR 7.0 million (EUR 7.7 million) in Q2, 14 13.3 mainly due to periodization of volumes between first and second quarter
Slide 10: Musti cost base provides natural hedge against inflation
Musti cost base provides natural hedge against inflation Operating expenses as % of net sales H1 FY22 Dynamics in an inflationary macro environment Pet business has proved resilient Materials and • Large share of non-discretionary staples, >50% food and services cat litter where consumers are brand
Slide 11: Segments
Segments 11
Slide 12: Finland: Net sales in Finland increased by 9.1% to EUR 40.5 million in Q2
Finland: Net sales in Finland increased by 9.1% to EUR 40.5 million in Q2 • Net sales in Finland increased by 9.1% to EUR 40.5 million (EUR 37.1 million) in Q2 with like- Net sales, EUR million, Quarterly adjusted EBITA, H1 adjusted EBITA, for-like growth of 0.3% against high comparable EUR million
Slide 13: Sweden: Strong sales and profitability
Sweden: Strong sales and profitability • Net sales in Sweden increased by 8.9% to EUR 38.8 million (EUR 35.6 million) in Q2 driven by improved like-for-like growth of 7.6% and new Net sales, EUR million, Quarterly adjusted EBITA, H1 adjusted EBITA, EUR million EUR million 10 stores opened and acquir
Slide 14: Norway: Net sales in Norway increased by 35.7% to EUR 13.1 million in Q2
Norway: Net sales in Norway increased by 35.7% to EUR 13.1 million in Q2 • Net sales in Norway increased by 35.7% to Net sales, EUR million Quarterly adjusted EBITA, H1 adjusted EBITA, EUR 13.1 million (EUR 9.7 million) in Q2, 3.5 EUR million EUR million driven by like-for-like growth of 10.3% in 77
Slide 15: Financial position
Financial position 15
Slide 16: Cash flow was temporarily affected due to securing availability and paying capital returns
Cash flow was temporarily affected due to securing availability and paying capital returns • In Q2, net cash flow from operating activities totaled EUR 5.3 million (EUR 14.0 million). Cash flow was burdened Cash flow from operating Gearing during the quarter by net working capital increasing by EUR
Slide 17: 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 18: Summary
Summary • Solid first half of Musti for financial year 2022: Net sales growth 16% and EBITDA growth 17%. • Strong and seasonally important first quarter turned into a turbulent second quarter. • April top-line growth continues the momentum seen since 2020 with a 2-year growth of 40%. • Strong expans
Slide 19: Thank you!
More information Interim Report for October 2021 – June David Rönnberg, CEO 2022 will be published on +46 70 896 6552 9 August 2022. 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.nikiti
Slide 20: Appendix
Appendix 20
Slide 21: 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 1.3 million loyal model2 #1 in Nordics, customers, unique rich 324 stores, 23.6% of net 25% market share1 data on Nordic pets and sales generated through Pet Parents onli
Slide 22: Strategic focus on Pet Parents across the Nordic countries
Strategic focus on Pet Parents across the Nordic countries We know pets. Pets know us. We make the life of pets and their parents easier, safer and more fun. Finland Sweden Norway Stable development as Further expansion and Store rollout with strong the most mature country convergence in efficiency
Slide 23: 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 • 93% of Musti’s staff are pet • Diverse, high quality • Seamless omnichannel business • Hair and nail trimming parents themselves offer
Slide 24: Musti Group ecosystem - All you need is Musti
Musti Group ecosystem - All you need is Musti A LOYALTY CLUB & BREEDERCLUB © PUPPYCLUB & PUPPY DATES QO PET SPA PREMIUM FOOD ~@ w TRAINING ACCESSORIES @ cP VET CARE CONVENIENT SHOPPING & & INSURANCE FAST DELIVERIES &&
Slide 25: Musti Group has 1.4 million loyal customers
Musti Group has 1.4 million loyal customers • Number of loyal customers grew to 1,372 140 stores, thousand by 31 March 2022 (1,222 thousand on all directly 31 March 2021). operated • On 31 March 2022 Musti Group had 128 stores 324 stores, of which 303 directly operated. of which 101 directly • In Oc
Slide 26: Key figures
Key figures Q2 Q2 EUR millions or as indicated 1-3/22 1-3/21 Change% FY2021 Net sales 92.4 82.4 12.1% 340.9 LFL sales growth, % 4.5% 11.6% 11.8% LFL store sales growth, % 1.3% 8.6% 8.8% Online share, % 23.6% 24.4% 23.1% Adjusted EBITA 7.0 7.7 -9.2% 36.8 Adjusted EBITA margin, % 7.6% 9.3% 10.8% Adjus
Slide 27: Responsibility at Musti Group
Responsibility at Musti Group We make the life of pets and their parents easier, safer and more fun. As a forerunner in our market, we want to do it responsibly. For us, this means putting the welfare of pets and people first, having high standards for quality, safety and expertise, as well as alway
Slide 28: 30-year track record – from traditional pet retail to full omnichannel
30-year track record – from traditional pet retail to full omnichannel 341 284 Net sales (EUR million) 247 216 170 145 • Concept development • eCommerce • Customer-centricity Operational platform and focus • Own brand products omni features • Leveraging customer data 25 78 103 FY1988 FY2010 FY2014 F