Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — H1 2020 Earnings Presentation
24 slides from Musti Group Oyj's earnings presentation, May 6, 2020
Slide 1: Half-year Financial Report 1 October 2019–31 March 2020
Half-year Financial Report 1 October 2019–31 March 2020 6 May 2020 CEO David Rönnberg CFO Robert Berglund
Slide 2: Agenda
Agenda • Group development • Segments • Financials and market outlook Musti Group | Half-year financial report October 2019–March 2020 2
Slide 3: Strong growth in net sales across channels and segments
Strong growth in net sales across channels and segments Musti Group | Half-year financial report October 2019–March 2020 3
Slide 4: Highlights in Q2/2020
Highlights in Q2/2020 • Group net sales totalled EUR 68.4 (59.0) million, an increase of 15.9%. • Like-for-like sales growth was 14.8%. • Adjusted EBITA was EUR 5.5 (4.8) million, up by 15.8%. • Adjusted EBITA margin was 8.1% (8.1%). • Operating profit decreased by 10.3% to EUR 2.1 (2.4) million due
Slide 5: Effects of coronavirus on Musti’s operations
Effects of coronavirus on Musti’s operations • Keeping staff and customers safe and maintaining the ability to deliver high- quality service have been the top priorities during the pandemic. • Continued to focus on growth and gaining market share in Q2. Musti’s underlying growth has continued strong
Slide 6: Q2: Net sales grew by 15.9% amid the coronavirus pandemic
Q2: Net sales grew by 15.9% amid the coronavirus pandemic Net sales and like-for-like growth Net sales: rolling 12 months Net sales by segment in Q2/2020 262,2 11% 11% 13% 8% 15% 246,6 8% 70,3 68,4 64,5 59,0 59,0 48 % 44 % Finland Sweden Norway Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 2019 Q2/20 Net sales, EUR
Slide 7: Q2: Adjusted EBITA increased by 15.8%
Q2: Adjusted EBITA increased by 15.8% Operating profit1, EUR million Adjusted EBITA, EUR million • Adjusted EBITA increased by 15.8% and adjusted EBITA margin was 8.1%. 4,0 14,0 % 14,0 % 6,0 5,5 • The improvement was mainly due to 3,5 an increase in sales, partly offset by 3,0 12,0 % 5,0 4,8 12,0 %
Slide 8: Segments
Segments Musti Group | Half-year financial report October 2019–March 2020 8
Slide 9: Finland: Strong net sales with stable adjusted EBITA development
Finland: Strong net sales with stable adjusted EBITA development • Net sales in Finland increased by Net sales, EUR million, Adjusted EBITA, EUR million and % 13.3% driven by like-for-like growth like-for-like growth, % 40,0 % of 9.7% including online growth 9.7% 10 after the online platform change
Slide 10: Sweden: Strong momentum with 19% LFL driven by stores and online
Sweden: Strong momentum with 19% LFL driven by stores and online • Net sales in Sweden increased by Net sales, EUR million, Adjusted EBITA, EUR million and % 14.8% driven by like-for-like like-for-like growth, % 5 25,0 % growth of 19.0% partly offset by 4,5 weakening SEK rate and closure 19.0 % of t
Slide 11: Norway: Strong and profitable like-for-like growth
Norway: Strong and profitable like-for-like growth Net sales, EUR million, Adjusted EBITA, EUR million and % • Net sales in Norway increased by like-for-like growth, % 43.7% driven by strong like-for-like growth of 30.2% and ramp-up of the stores. 30.2% 0,9 7 • Adjusted EBITA amounted to EUR 0.1 (0.
Slide 12: Financials and market outlook
Financials and market outlook Musti Group | Half-year financial report October 2019–March 2020 12
Slide 13: Net cash flow from operating activities increased by 37% – capital structure in line with long-term target
Net cash flow from operating activities increased by 37% – capital structure in line with long-term target • Net cash flow from operating activities Cash flow from operating Gearing, % totalled EUR 4.8 (3.5) million. 8 activities, EUR million • Gearing at the end of Q2 was 67.8% 7 (30 Sep 2019: 135.
Slide 14: Market outlook and financial targets
Market outlook and financial targets Musti believes that the trends driving the pet care market, such as the pet parenting megatrend and pet population Financial targets growth, will remain robust also during and after the Sales to reach at least EUR 350 million by the coronavirus pandemic. Growth f
Slide 15: Summary
Summary • Strong second quarter of the financial year 2020. • Net sales grew by 15.9% and like-for-like sales growth was 14.8%. Growth was mainly driven by the increased number of new customers. • All three segments showed strong like-for-like sales growth and gained market share. Adjusted EBITA mar
Slide 16: Thank you!
More information Interim Report David Rönnberg, CEO October 2019– +46 70 896 6552 June 2020 will be david.ronnberg@mustigroup.com published on Robert Berglund, CFO 4 August 2020 +358 50 534 8657 robert.berglund@mustigroup.com Essi Nikitin, Head of IR and Communications +358 50 581 1455 essi.nikitin@
Slide 17: Appendix
Appendix Musti Group | Half-year financial report October 2019–March 2020 17
Slide 18: Musti – the leading Nordic pet care specialist
Musti – the leading Nordic pet care specialist Leading Nordic Wide loyalty program Omnichannel business pet care specialist >1 million loyal customers, model2 #1 in Nordics, unique rich data on Nordic 277 stores, 22% market share1 pets and Pet Parents 20.7% of net sales generated through online chan
Slide 19: Strategic focus on Pet Parents across the Nordic countries
Strategic focus on Pet Parents across the Nordic countries MISSION We make the life of pets and their parents easier, safer and more fun. SEGMENTS Finland Sweden Norway Stable development as the Further expansion and Store rollout with strong most mature country convergence in efficiency ramp up and
Slide 20: Key figures
Key figures Q2 Q2 H1 H1 EUR millions or as indicated Change% Change% FY2019 1–3/20 1–3/19 10/19–3/20 10/18–3/19 Net sales 68.4 59.0 15.9 138.7 123.1 12.7 246.6 LFL sales growth, % 14.8% 10.8% 11.1% 10.5% 11.2% LFL store sales growth, % 10.0% 6.8% 8.5% 6.7% 7.8% Online share, % 23.7% 21.7% 21.6% 20.7
Slide 21: Over 1 million loyal customers
Over 1 million loyal customers 128 stores of which 110 directly = Own stores operated • Number of loyal customers grew to = Franchise stores 124 stores 1,076 thousand (949 thousand). of which 73 directly • At 31 March 2020 Musti had 287 operated stores (271), of which 218 (198) were directly operate
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 • Hair and nail trimming parents themselves offering with
Slide 23: Responsibility at Musti
Responsibility at Musti 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 always look
Slide 24: 30-year track record – from traditional pet retail to full omnichannel
30-year track record – from traditional pet retail to full omnichannel 247 Net sales (EUR million) 216 170 145 103 Operational • Customer-centricity • Concept development • eCommerce focus platform and • Leveraging • Own brand products omni features customer data 78 25 FY1988 FY2010 FY2014 FY2015 FY