Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q1 2021 Earnings Presentation
26 slides from Musti Group Oyj's earnings presentation, Feb 9, 2021
Slide 1: Interim Report Q1 1 October 2020–31 December 2020
Interim Report Q1 1 October 2020–31 December 2020 9 February 2021 CEO David Rönnberg CFO Robert Berglund
Slide 2: Agenda
Agenda • Group development • Segments • Financials and market outlook Interim Report Q1 October 2020 – December 2020
Slide 3: Strongest quarter so far
Strongest quarter so far 3
Slide 4: Highlights Q1/2021
Highlights Q1/2021 • Group net sales totaled EUR 84.3 million (70.3), an increase of 19.9%. • Like-for-like sales growth was 13.1%. • Adjusted EBITA was EUR 10.6 million (7.8), up by 36.4%. • Adjusted EBITA margin was 12.6% (11.1%). • Operating profit increased by 56.3% to EUR 8.4 million (5.4), rep
Slide 5: Puppy registrations continue on an elevated level
Puppy registrations continue on an elevated level Musti Group new puppy wins are supporting our market share gain Market evidence from Sweden: Last quarter up +29% Musti Group trend: Last quarter up +46% New puppy registrations, year on year growth New puppy food customers, rolling 4 weeks 45% 9,000
Slide 6: Musti Group’s winning concept continues to gain share, with significant remaining upside in the Nordic core market
Musti Group’s winning concept continues to gain share, with significant remaining upside in the Nordic core market Nordic pet food and products market, 2019 Market evidence from Finland Pet food and products growth, 24% Finland, 1-12/2020 35% 11.0 % 30% 12% 1.2 % Grocery and mixed retail Other pet s
Slide 7: Q1: Net sales increased by 19.9% to EUR 84.3 million
Q1: Net sales increased by 19.9% to EUR 84.3 million as a result of both strong like-for-like growth and increased number of stores in all countries Net sales, EUR million Net sales: rolling 12 months Net sales by segment in Q1/2020 298 284 8% 15% 12% 12% 13% 272 11% 253 262 84.3 76.9 46% 70.3 68.4
Slide 8: Q1: Group adjusted EBITA increased by 36.4%
Q1: Group adjusted EBITA increased by 36.4% • Adjusted EBITA increased by 36.4% to Operating profit1, EUR million 10.0 Adjusted EBITA, EUR million EUR 10.6 million (7.8) and adjusted EBITA margin was 12.6% (11.1%). 9.0 8.4 10.6 10.1 • The improvement was mainly due to an 8.0 7.8 10.0 increase in sal
Slide 9: Segments
Segments 9
Slide 10: Finland: Strong net sales driven by like-for-like growth of 11.8% in Q1
Finland: Strong net sales driven by like-for-like growth of 11.8% in Q1 Net sales, EUR million, Adjusted EBITA, EUR million • Net sales in Finland increased by 12.9% to EUR 39.1 million (34.6) driven by like-for-like 10.0 4.0% 9.7% 6.2% 9.7% 11.8% growth of 11.8% and growth from the stores 10 9.4 op
Slide 11: Sweden: Strong profitability with 15.6% adjusted EBITA margin in Q1
Sweden: Strong profitability with 15.6% adjusted EBITA margin in Q1 7 Net sales, EUR million, Adjusted EBITA, EUR million • Net sales increased by 19.3% to EUR 35.7 million (29.9) driven by like-for-like growth of 9.5% 6 5.6 supported by the strengthening of the SEK rate in 10.5% 19.0% 13.0% 11.5% 9
Slide 12: Norway: Strong growth in both sales and profitability in Q1
Norway: Strong growth in both sales and profitability in Q1 Net sales, EUR million Adjusted EBITA, EUR million • Net sales in Norway increased by 64.2% to 2 EUR 9.6 million (5.8), driven by strong like-for- 1.8 21.7% 30.2% 44.8% 35.3% 40.4% like growth of 40.4% and ramp-up of the stores opened durin
Slide 13: Sweden and Norway are approaching the profitability level of Finland
Sweden and Norway are approaching the profitability level of Finland Country adj. EBITA margin, % Convergence trend continued in Q1’21 25.6 % Q1'20 Q1'21 24% 24% 25.1 % 22% Finland Benchmark 19.1 % 12% 15.6 % 9% 12% 12.9 % 7% Sweden 10.3 % Integration 4% Norway Ramp-up -6% FY2018 FY2019 FY2020 Finla
Slide 14: Financial position
Financial position 14
Slide 15: Net cash flow from operating activities totaled EUR 15.9 million in Q1
Net cash flow from operating activities totaled EUR 15.9 million in Q1 Cash flow from operating Gearing, % • Net cash flow from operating activities activities, EUR million totaled EUR 15.9 million (14.6). 20.6 20.0 200 .0% • Gearing at the end of the reporting period 180 .0% was 56.3% (30 September
Slide 16: Market outlook and financial targets
Market outlook and financial targets As a result of the Pet Parenting trend, people are spending more on higher quality and more premium food, as well as a more diverse range of products and services. This underlying trend that drives the long-term structural growth of the pet care market remains ro
Slide 17: Summary
Summary • Net sales increased by 19.9% to EUR 84.3 million (70.3) as a result of a strong like-for-like growth of 13.1% (7.7.%). Growth was mainly driven by increasing number of new customers and an increased number of directly operated stores. • Store sales increased by 17.6% to EUR 62.4 million (5
Slide 18: Thank you!
More information Half-Year Financial Report October 2020-March 2021 David Rönnberg, CEO will be published on +46 70 896 6552 4 May 2021 david.ronnberg@mustigroup.com Robert Berglund, CFO +358 50 534 8657 robert.berglund@mustigroup.com Essi Nikitin, Head of IR and Communications +358 50 581 1455 essi
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 1.2 million loyal model2 #1 in Nordics, customers, unique rich 300 stores, 21.6% of net 24% 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 1.2 million loyal customers
Musti Group has 1.2 million loyal customers 131 stores 126 stores of which of which 84 115 directly directly operated • Number of loyal customers grew to 1,189 operated 43 stores, thousand by December 2020 (1,052 thousand all directly in December 2019). operated • At 31 December 2020 Musti had 300 s
Slide 24: 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 25: Key figures
Key figures Q1 Q1 EUR millions or as indicated Change% FY2020 10–12/20 10-12/19 Net sales 84.3 70.3 19.9 % 284.4 LFL sales growth, % 13.1% 7.7% 11.5% LFL store sales growth, % 8.0% 7.2% 7.3% Online share, % 21.6% 19.5% 22.5% Adjusted EBITA 10.6 7.8 36.4% 29.8 Adjusted EBITA margin, % 12.6% 11.1% 10.
Slide 26: 30-year track record – from traditional pet retail to full omnichannel
30-year track record – from traditional pet retail to full omnichannel 284 Net sales (EUR million) 247 216 170 145 Operational • Concept development • eCommerce • Customer-centricity focus platform and • Own brand products omni features • Leveraging customer data 25 78 103 FY1988 FY2010 FY2014 FY201