Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — FY2022 Earnings Presentation
27 slides from Musti Group Oyj's earnings presentation, Nov 8, 2022
Slide 1: Financial Statements Release 1 October 2021–30 September 2022
Financial Statements Release 1 October 2021–30 September 2022 8 November 2022 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Our resilient growth continues
Our resilient growth continues 2
Slide 3: Summary of FY22 – Our resilient growth continues
Summary of FY22 – Our resilient growth continues Net sales growth Adjusted EBITDA growth Accelerating 2-year growth +16% 14.7% +13.7% +38% Own and exclusive brands Cash flow Directly operated store adds 52.7% (up from 51.0%) EUR 46.1m +39 Loyalty club members growth Gross margin Profit distribution
Slide 4: Highlights Q4 and FY22
Highlights Q4 and FY22 • Group net sales increased by 11.3% to EUR 101.8 million in Q4. In FY22, group net sales increased by 14.7% to EUR 391.1 million. • Like-for-like growth amounted to 4.7% (10.9%) in Q4 due to slower sales of discretionary products. Like-for-like growth was also affected by the
Slide 5: Musti puppy acquisition continues at record high levels
Musti puppy acquisition continues at record high levels Covid pandemic boosted the Sweden puppy registrations Musti new puppy food demand for puppies and indexed at FY19 customers indexed at FY19 kittens Musti puppy and kitten clubs launched end of FY20 followed by upgraded breeder club in FY22 • St
Slide 6: Double-digit growth despite economic uncertainty
Double-digit growth despite economic uncertainty Net sales by segment in Q4/2022 Quarterly net sales, EUR million FY net sales, EUR million 14.7% 18.9% 20.2% 12.1% 15.5% 11.3% 14.1% 15.3% 19.9% 14.7% 43.5% 101.3 101.8 95.5 391.1 17% 41.7% 91.5 92.4 340.9 Finland Sweden Norway 284.4 246.6 Net sales b
Slide 7: Q4 growth was 11%, 32% on a two-year basis and 58% on 3-year basis
Q4 growth was 11%, 32% on a two-year basis and 58% on 3-year basis 2Y growth 3Y growth 1Y growth 62% 60% 44% 58% 58% 58% 42% 57% 57% 21% 20% 20% 20% 40% 40% 39% 55% 19% 19% 35% 35% 17% 32% 16% 16% 32% 31% 31% 28% 12% 11% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 8: Gross margin and share of O&E products on a good level
Gross margin and share of O&E products on a good level Gross margin % O&E % 47.5 % 53.6 % • Gross margin totaled 45.2% (45.7%) in Q4. Gross margin was negatively 52.7 % impacted by increased inflation and 46.5 % 46.4 % 52.2 % unfavorable exchange rate 51.9 % development. During the quarter, inventor
Slide 9: Group adjusted EBITDA increased 13.7% to EUR 66.9 million in FY22
Group adjusted EBITDA increased 13.7% to EUR 66.9 million in FY22 25.0 50.0 % Adjusted EBITDA, EUR million Quarterly adjusted EBITDA, EUR million 45.0 % 19.8 13.7% 20.0 40.0 % 17.2 17.6 66.9 35.0 % 15.7 15.6 21% 15.0 58.8 15.0 14.0 30.0 % 13.1 12.9 12.0 48.1 11.1 11.2 25.0 % 9.9 9.9 38.1 10.0 8.8 8.
Slide 10: Group adjusted EBITA increased 5.4% to EUR 38.8 million in FY22
Group adjusted EBITA increased 5.4% to EUR 38.8 million in FY22 Quarterly adjusted EBITA, EUR million Adjusted EBITA, EUR million • In Q4, group adjusted EBITA decreased by 9.2% to EUR 10.2 million (EUR 11.2 million), due to 5.4% stabilization of sales of the discretionary items, 14 13.3 combined wi
Slide 11: Segments
Segments 11
Slide 12: Net sales in Finland increased by 11.2% to EUR 169.7 million in FY22
Net sales in Finland increased by 11.2% to EUR 169.7 million in FY22 • Net sales in Finland increased by 10.1% to EUR 44.3 million (EUR 40.3 million) in Q4 and by 11.2% to EUR 169.7 million (EUR 152.6 million) in FY22. Net sales, EUR million, Quarterly adjusted EBITA, Adjusted EBITA, EUR million EUR
Slide 13: Net sales in Sweden increased by 11.8% to EUR 164.9 million in FY22
Net sales in Sweden increased by 11.8% to EUR 164.9 million in FY22 • Net sales in Sweden increased by 7.0% to EUR 42.5 Quarterly adjusted EBITA, Adjusted EBITA, million (EUR 39.7 million) in Q4 and by 11.8% to Net sales, EUR million, EUR million EUR million 10 EUR 164.9 million (EUR 147.5 million)
Slide 14: Net sales in Norway increased by 38.7% to EUR 56.5 million in FY22
Net sales in Norway increased by 38.7% to EUR 56.5 million in FY22 • Net sales in Norway increased by 31.1% to EUR Net sales, EUR million Quarterly adjusted EBITA, Adjusted EBITA, 15.0 million (EUR 11.5 million) in Q4 and by EUR million 3.5 EUR million 38.7% to EUR 56.5 million (EUR 40.7 million) in
Slide 15: Financial position
Financial position 15
Slide 16: Cash flow from operating activities totaled EUR 46.1 million in FY22
Cash flow from operating activities totaled EUR 46.1 million in FY22 • In Q4, the net cash flow from operating activities totaled EUR 13.6 million (EUR 15.0 million). Cash flow from operating activities for FY22 amounted to EUR 46.1 million (EUR 54.9 Cash flow from operating Gearing million). activi
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
Summary • Double-digit growth in both Q4 and financial year 2022 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 38%. • Pet sector is proving its resilience and defensive growth charac
Slide 19: Thank you!
More information Interim Report for October 2022 – December 2022 David Rönnberg, CEO will be published on +46 70 896 6552 2 February 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 essi.
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 (319) Omni = Franchised (16) .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 335 stores, 22.2% 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 • 93% of Musti’s staff are pet • Diverse, high quality • Seamless omnichannel business • Hair and nail trimming parents themselves offer
Slide 24: Musti Group has 1.5 million loyal customers
Musti Group has 1.5 million loyal customers • Number of loyal customers grew to 1,454 thousand by 30 September 2022 (1,297 thousand on 30 September 2021). • On 30 September 2022 Musti Group had 140 stores, 335 stores, of which 319 directly operated. all directly operated • In October 2021 – Septembe
Slide 25: Key figures
Key figures EUR millions or as indicated Q4/22 Q4/21 Change% FY2022 FY2021 Change% Net sales 101.8 91.5 11.3% 391.1 340.9 14.7% LFL sales growth, % 4.7% 10.9% 6.7% 11.8% LFL store sales growth, % 2.4% 8.2% 4.2% 8.8% Online share, % 21.3% 22.3% 22.2% 23.1% Adjusted EBITDA 17.6 17.2 2.2% 66.9 58.8 13.
Slide 26: Responsibility at Musti Group
Responsibility at Musti Group 26
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