Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q3 2022 Earnings Presentation
26 slides from Musti Group Oyj's earnings presentation, Aug 9, 2022
Slide 1: Interim Report 1 October 2021–30 June 2022
Interim Report 1 October 2021–30 June 2022 9 August 2022 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Profitable growth on the way towards long-term targets
Profitable growth on the way towards long-term targets 2
Slide 3: Musti growth journey continues
Profitable growth on the way towards long-term targets Musti growth journey continues Net sales growth Adjusted EBITDA growth Accelerating 2-year growth +16% +16% +21% +39% Adjusted EBITA growth Cash flow Directly operated store adds +14% EUR14m +9 Loyalty club members growth Gross margin Own and ex
Slide 4: Excellent Q3 – on track with the long-term targets
Excellent Q3 – on track with the long-term targets • Group net sales increased 15.5% in Q3 to EUR 95.5 million (82.7). In October - June, group net sales increased 16.0% to EUR 289.3 million (249.4). • Like-for-like sales growth was 8.3% in Q3 and 7.4% in October - June. Like-for-like growth was aff
Slide 5: Musti growth trend is solid
Musti growth trend is solid Net sales: rolling 12 months 368 381 358 326 341 Quarterly net sales, EUR million 9 months net sales, EUR million 17% 20.2% 18.9% 20.2% 12.1% 15.5% 13.5% 13.9% 20.2% 16.0% 289.3 101.3 95.5 91.5 92.4 17% 249.4 82.7 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 207.5 % LTM growth Q3/21 – Q
Slide 6: Growth trend is back on track
Growth trend is back on track Group net sales growth, Group net sales growth, 1 year basis 2 year basis 44% 21% 42% 20% 20% 20% 40% 40% 39% 19% 19% 35% 35% 17% 32% 31% 16% 16% 31% 28% 12% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2020 FY2021 FY2022 FY2020 FY2021 FY2022
Slide 7: Gross margin and share of O&E products are strong
Gross margin and share of O&E products are strong Gross margin % OE % 47.5 % • Gross margin increased to 53.6 % 46.4% (45.4%) in Q3 46.5 % 46.4 % • Growth in gross margin was a 52.2 % result of: 51.9 % - Increased number of directly operated store - Successful campaign pressure - Higher share of own
Slide 8: Group adjusted EBITDA increased 21% to EUR 15.6 million in Q3
Group adjusted EBITDA increased 21% to EUR 15.6 million in Q3 25.0 50.0 % 9 months adjusted EBITDA, Quarterly adjusted EBITDA, EUR million EUR million 45.0 % 19.8 20.0 40.0 % 18% 17.2 35.0 % 49.3 15.7 15.6 15.0 22% 15.0 14.0 30.0 % 41.7 13.1 12.9 12.0 11.1 11.2 25.0 % 33.1 9.9 9.9 10.0 8.8 19.5% 19.
Slide 9: Group adjusted EBITA increased 14% to EUR 8.3 million in Q3
Group adjusted EBITA increased 14% to EUR 8.3 million in Q3 Quarterly adjusted EBITA, EUR million 9 months adjusted EBITA, EUR million • Group adjusted EBITA increased by 14.0% to EUR 8.3 million (EUR 7.3 14 13.3 million). Adjusted EBITA improved 12% mainly due to growing our network, improving gros
Slide 10: Segments
Segments 10
Slide 11: Finland: Net sales in Finland increased by 13.3% to EUR 41.1 million in Q3
Finland: Net sales in Finland increased by 13.3% to EUR 41.1 million in Q3 • Net sales in Finland increased by 13.3% to EUR 41.1 million (EUR 36.2 million). Net sales, EUR million, Quarterly adjusted EBITA, 9 months adjusted EBITA, • Growth was supported by the stores opened or acquired during the l
Slide 12: Sweden: Strong sales and profitability
Sweden: Strong sales and profitability • Net sales in Sweden increased by 11.7% to EUR 40.6 million (EUR 36.4 million) driven by improved like-for-like growth of 10.3% and new Net sales, EUR million, Quarterly adjusted EBITA, 9 months adjusted EBITA, EUR million EUR million 10 stores opened or acqui
Slide 13: Norway: Adjusted EBITA increased by 59.5% to EUR 2.6 million in Q3
Norway: Adjusted EBITA increased by 59.5% to EUR 2.6 million in Q3 • Net sales in Norway increased by 37.6% to Net sales, EUR million Quarterly adjusted EBITA, 9 months adjusted EBITA, EUR 13.8 million (EUR 10.0 million), driven 3.5 EUR million EUR million by like-for-like growth of 15.7% in line wi
Slide 14: Financial position
Financial position 14
Slide 15: Cash flow from operating activities totaled EUR 14.0 million in Q3
Cash flow from operating activities totaled EUR 14.0 million in Q3 • In Q3, net cash flow from operating activities totaled EUR 14.0 million (EUR 10.1 million). Decreased inventories Cash flow from operating Gearing contributed to the cash flow positively. activities, EUR million 20 • Gearing at the
Slide 16: 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 17: Summary
Summary • Excellent quarter for Musti: Net sales growth 15.5% and EBITDA growth 20.8%. • Pet sector has proved resilient in historically challenging times, momentum continues strong. • We expect to benefit from the strength and breadth of our footprint in our markets with our unique multi-brand omni
Slide 18: Thank you!
Financial Statements More information release for October 2021 – David Rönnberg, CEO September 2022 will be +46 70 896 6552 published on david.ronnberg@mustigroup.com 8 November 2022. Toni Rannikko, CFO +358 40 078 8812 toni.rannikko@mustigroup.com Essi Nikitin, Head of IR and Communications +358 50
Slide 19: Appendix
Appendix 19
Slide 20: 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 1.4 million loyal model2 #1 in Nordics, customers, unique rich 329 stores, 22.6% of net 25% market share1 data on Nordic pets and sales generated through Pet Parents onli
Slide 21: 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 22: 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 23: Musti Group has 1.4 million loyal customers
Musti Group has 1.4 million loyal customers • Number of loyal customers grew to 1,409 140 stores, thousand by 30 June 2022 (1,257 thousand on all directly 30 June 2021). operated • On 30 June 2022 Musti Group had 128 stores 329 stores, of which 312 directly operated. of which 111 directly • In Octob
Slide 24: Key figures
Key figures EUR millions or as indicated Q3/22 Q3/21 Change% FY2021 Net sales 95.5 82.7 15.5% 340.9 LFL sales growth, % 8.3% 11.6% 11.8% LFL store sales growth, % 6.3% 10.7% 8.8% Online share, % 22.6% 24.1% 23.1% Adjusted EBITDA 15.6 12.9 20.8% 58.8 Adjusted EBITDA margin, % 16.3% 15.6% 17.3% Adjust
Slide 25: Responsibility at Musti Group
Responsibility at Musti Group 25
Slide 26: 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