Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q1 2023 Earnings Presentation
28 slides from Musti Group Oyj's earnings presentation, Jan 31, 2023
Slide 1: Interim Report 1 October 2022–31 December 2022
Interim Report 1 October 2022–31 December 2022 31 January 2023 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Record sales and cashflow
Record sales and cashflow 2
Slide 3: Summary of the first quarter of the financial year 2023
Summary of the first quarter of the financial year 2023 Net sales growth Growth excl. currency effects Accelerating 2-year growth +16% 8.9% 13.1% +31% Own and exclusive brands Cash flow Directly operated store adds 53.7% EUR 18.7m +6 (+31 LTM) Loyalty club members growth Gross margin Adjusted EBITDA
Slide 4: Highlights Q1/23
Highlights Q1/23 • Group net sales totaled EUR 110.4 (101.3) million, an increase of 8.9%. • Group net sales growth excluding the changes in the currency exchange rates was 13.1%. • Like-for-like growth, which is calculated in local currencies, amounted to 7.0% (9.2%), with higher growth in food and
Slide 5: Musti puppy acquisitions growth continues, indicating share gain
Musti puppy acquisitions growth continues, indicating share gain Market evidence, Sweden Last 3 months Oct-Dec, -4% Musti Group trend Last 3 months Q1/23 +3% against 2021 against Q1/22 Against pre-covid +11% Against pre-covid +56% Oct – Dec 2019 Q1/20 Registrations by month New puppy food customers
Slide 6: Double digit growth in resilient food and consumables categories
Double digit growth in resilient food and consumables categories Discretionary product categories delivered positive growth against high comparable figures in a tougher demand environment Local currency growth Q1/23 product sales mix 25% Discretionary 27% 20% Food 51% 15% Consumables 10% 22% 5% • Fo
Slide 7: Net sales grew 8.9% to EUR 110.4 million, FX neutral growth 13.1%
Net sales grew 8.9% to EUR 110.4 million, FX neutral growth 13.1% LTM sales passed EUR 400 million for the first time Quarterly net sales, EUR million FY net sales, EUR million Net sales by segment in Q1/2023 20.2% 12.1% 15.5% 11.3% 8.9% 9.7% 19.9% 20.2% 8.9% 110.4 110.4 101.3 101.8 16% 101.3 95.5 9
Slide 8: Growth 9% equivalent to 13% in constant currency, 31% on 2-year basis
Growth 9% equivalent to 13% in constant currency, 31% on 2-year basis 1Y growth 2Y growth 3Y growth 44% 62% 21% 20% 42% 60% 20% 58% 58% 57% 58% 57% 19% 20% 19% 40% 40% 39% 55% 57% 35% 35% 17% 16% 32% 31% 32% 16% 31% 31% 28% 12% 11% 10% 9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 9: Share of O&E products increased to 53.7%
Share of O&E products increased to 53.7% Gross margin % O&E % 53.7% • The share of sales of own and 45.9% exclusive brands increased to 53.7% (53.6%). • Gross margin decreased to 45.9% (47.5%). Gross margin was negatively impacted by increased inflation, unfavorable currency exchange rate developmen
Slide 10: Group adjusted EBITDA amounted to EUR 19.1 million in Q1/23
Group adjusted EBITDA amounted to EUR 19.1 million in Q1/23 25.0 50.0 % Adjusted EBITDA, EUR million Quarterly adjusted EBITDA, EUR million 45.0 % 19.8 20.0 19.1 40.0 % 17.2 17.6 17% 15.7 15.6 35.0 % 19.8 19.1 15.0 15.0 14.0 30.0 % 13.1 12.9 15.7 12.0 11.1 11.2 25.0 % 9.9 9.9 12.0 10.0 8.8 8.2 20.0
Slide 11: Group adjusted EBITA amounted to EUR 11.7 million in Q1/23
Group adjusted EBITA amounted to EUR 11.7 million in Q1/23 Quarterly adjusted EBITA, EUR million Adjusted EBITA, EUR million • Group adjusted EBITA decreased by 12.2% to EUR 11.7 million (EUR 13.3 million). 14 13.3 14% 13.3 • The decrease, compared to previous year’s record 11.7 quarter, was due to
Slide 12: Segments
Segments 12
Slide 13: Net sales in Finland increased by 8.5% to EUR 47.6 million
Net sales in Finland increased by 8.5% to EUR 47.6 million Net sales, EUR million Quarterly adjusted EBITA, Adjusted EBITA, • Net sales in Finland increased by 8.5% to EUR EUR million EUR million 47.6 million (EUR 43.8 million). 12.1% 9.1% 13.3% 10.1% 8.5% 10.4 10.4 9.9 10.0 9.9 • Sales growth was s
Slide 14: Net sales in Sweden increased by 4.3% to EUR 44.8 million
Net sales in Sweden increased by 4.3% to EUR 44.8 million, FX neutral growth 12.9% Net sales, EUR million Quarterly adjusted EBITA, Adjusted EBITA, • EUR million EUR million 10.0 Net sales in Sweden increased by 4.3% to EUR 44.8 million (EUR 43.0 million). 7.0% 4.3% 9.0 9.0 20.5% 8.9% 11.7% • The we
Slide 15: Net sales in Norway increased by 23.7% to EUR 18.0 million
Net sales in Norway increased by 23.7% to EUR 18.0 million Net sales, EUR million Quarterly adjusted EBITA, Adjusted EBITA, • Net sales in Norway increased by 23.7% to EUR EUR million 4.0 EUR million 18.0 million (EUR 14.6 million), driven by like- 52.3% 35.7% 37.6% 31.1% 23.7% 4.0 for-like growth a
Slide 16: Financial position
Financial position 16
Slide 17: Cash flow from operating activities totaled a record high EUR 18.7 million
Cash flow from operating activities totaled a record high EUR 18.7 million • Net cash flow from operating activities totaled EUR 18.7 million (EUR 13.2 million). Decrease in net working capital contributed to the cash flow by EUR 1.2 million (EUR -5.4 million) during the Cash flow from operating Gea
Slide 18: 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 19: Summary
Summary • Record sales and cashflow despite inflation placing incremental pressure on both our customers and ourselves. • Top-line growth continues the momentum seen since 2020 with a 2-year growth of 31%. • We faced exceptional headwinds from SEK and NOK, affecting the Group sales by 4.2%-points in
Slide 20: Thank you!
More information Half-Year Financial Report for October 2022 – March David Rönnberg, CEO 2023 will be published on +46 70 896 6552 4 May 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 e
Slide 21: Appendix
A ppendix « pe
Slide 22: 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 (325) Omni = Franchised (15) .NO Omni banne
Slide 23: 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 340 stores, 22.2% of net 25% market share1 data on Nordic pets and sales generated through Pet Parents onli
Slide 24: 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 25: Musti Group has 1.5 million loyal customers
Musti Group has 1.5 million loyal customers • Number of loyal customers grew to 1,485 thousand by 31 December 2022 (1,340 thousand on 31 December 2021). • On 31 December 2022, Musti Group had 139 stores, 340 stores, of which 325 directly operated. all directly operated • In October 2022 – December 2
Slide 26: Key figures
Key figures EUR millions or as indicated Q1/23 Q1/22 Change% FY2022 Net sales 110.4 101.3 8.9% 391.1 LFL sales growth, % 7.0% 9.2% 6.7% LFL store sales growth, % 3.7% 6.6% 4.2% Online share, % 22.2% 21.5% 22.2% Adjusted EBITDA 19.1 19.8 -3.5% 66.9 Adjusted EBITDA margin, % 17.3% 19.6% 17.1% Adjusted
Slide 27: Responsibility at Musti Group
Responsibility at Musti Group 27
Slide 28: 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