Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q3 2023 Earnings Presentation
27 slides from Musti Group Oyj's earnings presentation, Aug 10, 2023
Slide 1: Interim Report 1 October 2022–30 June 2023
Interim Report 1 October 2022–30 June 2023 10 August 2023 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Double digit like-for-like with increasing adjusted EBITA margin
Double digit like-for-like with increasing adjusted EBITA margin 2
Slide 3: Summary Q3/2023
Summary Q3/2023 Q3, April – June 2023 October – June 2023 Net sales Growth excl. currency effects Like-for-like sales growth Net sales EUR 103.3m 15.6% 10.2% EUR 315.4m Own and exclusive brands Cash flow Directly operated store adds Cash flow 51.4% EUR 22.1m +1 net EUR 50.5m (+16 LTM) Loyalty club m
Slide 4: Highlights Q3/23
Highlights Q3/23 • Group net sales totaled EUR 103.3 (95.5) million, an increase of 8.2%. • Group net sales growth excluding the changes in the currency exchange rates was 15.6%. • Like-for-like growth, which is calculated in local currencies, amounted to 10.2% (8.3%). • Adjusted EBITDA increased 10
Slide 5: Resilient food category delivering accelerating growth
Resilient food category delivering accelerating growth Discretionary and consumable categories faced high year on year comparison figures Local currency growth Q3/23 product sales mix 25% Discretionary 20% 24% 15% Food 10% 57% Consumables 20% 5% 0% • Food represents >50% of product sales with recurr
Slide 6: Steady online growth continues
Steady online growth continues Online sales EURm Online LFL, in local currency 30 40% 36% 35% 33% 25 31% 30% 28% 20 25% 20% 20% 20% 15 20% 19% 18% 16% 15% 14% 14% 14% 13% 10 10% 10% 5 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY20 FY21 FY22 FY2
Slide 7: Q3 net sales grew 8.2% to EUR 103.3 million, FX neutral growth 15.6%
Q3 net sales grew 8.2% to EUR 103.3 million, FX neutral growth 15.6% Quarterly net sales, EUR million 9 months net sales, EUR million Net sales: rolling 12 months 409 417 15.5% 11.3% 8.9% 10.0% 8.2% 13.9% 20.2% 16.0% 9.0% 391 400 381 110.4 315.4 15% 101.8 101.7 103.3 289.3 95.5 249.4 207.5 Q3/22 Q4/
Slide 8: Growth 8% equivalent to 16% in constant currency, with 10% LFL
Growth 8% equivalent to 16% in constant currency, with 10% LFL 1Y growth LFL growth (local currency) FX rate impact on EUR sales growth, Q3/23 [Q1-Q3/23] 21% 20% 20% • Group: -7.5% [-5.7%] 19% 20% 19% • Sweden: -11% [-9%] 17% • Norway: -20% [-13%] 16% 16% • Both SEK and NOK are at 15% historically w
Slide 9: Share of O&E products remained on a good level in Q3
Share of O&E products remained on a good level in Q3 • The share of sales of own and Gross margin % O&E % exclusive brands remained at a good level of 51.4% (51.9%). • Gross margin decreased to 45.7% (46.4%). 45.7% 51.4% • Gross margin was negatively impacted mainly by unfavorable currency exchange
Slide 10: Group adjusted EBITA increased 14.4% to EUR 9.5 million in Q3/23
Group adjusted EBITA increased 14.4% to EUR 9.5 million in Q3/23 Quarterly adjusted EBITA, EUR million 9 months adjusted EBITA, EUR million • Group adjusted EBITA increased by 14.4% to EUR 9.5 (8.3) million. 14 15% 30.1 • The increase was due to good traffic, production 11.7 28.6 integration, price
Slide 11: Segments
Segments 11
Slide 12: Net sales in Finland increased by 15.6% to EUR 47.5 million in Q3
Net sales in Finland increased by 15.6% to EUR 47.5 million in Q3 Net sales, EUR million Quarterly adjusted EBITA, 9 months adjusted EBITA, EUR million EUR million • Net sales in Finland increased by 15.6% to EUR 13.3% 10.1% 8.5% 10.9% 15.6% 29.4 47.5 (41.1) million. 9.9 10.0 47.6 47.5 9.5 26.3 • 44
Slide 13: Net sales in Sweden increased by 1.0% to EUR 41.1 million in Q3
Net sales in Sweden increased by 1.0% to EUR 41.1 million in Q3, FX neutral growth 11.9% Net sales, EUR million Quarterly adjusted EBITA, 9 months adjusted EBITA, EUR million EUR million 10 • Net sales in Sweden increased by 1.0% to EUR 41.1 11.7% 7.0% 4.3% 7.2% 1.0% 9 20.4 (40.6) million. 44.8 18.6
Slide 14: Net sales in Norway increased by 7.1% to EUR 14.8 million
Net sales in Norway increased by 7.1% to EUR 14.8 million, FX neutral growth 26.9% Net sales, EUR million Quarterly adjusted EBITA, 9 months adjusted EBITA, EUR million 4 EUR million • Net sales in Norway increased by 7.1% to EUR 37.6% 31.1% 23.7% 15.5% 7.1% 7.6 14.8 (13.8) million, driven by like-f
Slide 15: Financial position
Financial position 15
Slide 16: Cash flow from operating activities increased to EUR 22.1 million in Q3
Cash flow from operating activities increased to EUR 22.1 million in Q3 • In Q3, the net cash flow from operating activities totaled EUR 22.1 Cash flow from operating activities, EUR million (14.0) million, driven by EBITDA and supply chain efficiency • Gearing at the end of the reporting period was
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: Stable performance
Summary: Stable performance Q3 over 4 years, FY2020-2023 Net sales and gross margin % Adj. EBITDA, EURm and % Adj. EBITA, EURm and % • We increased sales in local currencies by 15.6% in the quarter. Like-for-like sales growth was 10.2%. • Food and consumables, that make up over 70% of our 15% 16% 14
Slide 19: Thank you!
Financial Statements release for October 2022 – September 2023 will be More information published on 9 November David Rönnberg, CEO 2023. +46 70 896 6552 david.ronnberg@mustigroup.com Toni Rannikko, CFO +358 40 078 8812 toni.rannikko@mustigroup.com www.mustigroup.com/investors Twitter @MustiGroup Th
Slide 20: Appendix
Appendix 20
Slide 21: 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 (328) Omni = Franchised (13) .NO Omni banne
Slide 22: 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 341 stores, 23.5% of net 25% market share1 data on Nordic pets and sales generated through Pet Parents onli
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 • Diverse, high-quality offering • Seamless omnichannel • Hair and nail trimming • 93% of Musti’s staff are business model ensuring tota
Slide 24: Musti Group has 1.5 million loyal customers
Musti Group has 1.5 million loyal customers • The number of loyal customers increased by 8.0% to 1,522 thousand (1,409 thousand on 30 June 2022). • On 30 June 2023, Musti Group had 136 stores, 341 stores, of which 328 directly operated. all directly operated • In October 2022 – June 2023, share of o
Slide 25: Key figures
Key figures 10/2022- 10/2021- 4-6/2023 4-6/2022 Change % Change % EUR millions or as indicated 6/2023 6/2022 FY2022 Net sales 103.3 95.5 8.2% 315.4 289.3 9.0% 391.1 LFL sales growth, % 10.2% 8.3% 9.3% 7.4% 6.7% LFL store sales growth, % 7.3% 6.3% 6.6% 4.8% 4.2% Online share, % 23.5% 22.6% 23.1% 22.6
Slide 26: 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 27: 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