Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q1 2022 Earnings Presentation
28 slides from Musti Group Oyj's earnings presentation, Feb 8, 2022
Slide 1: Interim Report 1 October 2021–31 December 2021
Interim Report 1 October 2021–31 December 2021 8 February 2022 CEO David Rönnberg CFO Toni Rannikko
Slide 2: New records on sales and EBITDA
New records on sales and EBITDA 2
Slide 3: Continued growth with increasing margins in Q1/2022
Continued growth with increasing margins in Q1/2022 Musti growth journey continues Q1 was best in Musti history Net sales growth Gross profit growth Highest sales in history +20% +24% 101 €m Adjusted EBITA growth Cash flow +25% 13 €m Accelerating 2-year growth Loyalty club members growth Average spe
Slide 4: Highlights Q1/2022
Highlights Q1/2022 • Group net sales totaled EUR 101.3 million (84.3 million), an increase of 20.2%. • Like-for-like sales growth was 9.2%. • Adjusted EBITDA increased to EUR 19.8 (15.7) million, up by 26.5%. • Adjusted EBITDA margin was 19.6% (18.6%). • Adjusted EBITA was EUR 13.3 (10.6) million, u
Slide 5: Musti puppy wins on a positive growth trend, supported by share gain
Musti puppy wins on a positive growth trend, supported by share gain Market evidence, Sweden Q1, 1-year growth -10% Musti Group trend Q1, 1-year growth +10% Q1, 2-year growth +16% Q1, 2-year growth +60% Jan 2022, 1-year +3% Registrations by month New puppy food customers, by calendar month 1/2018 to
Slide 6: Strong growth continued in Q1
Strong growth continued in Q1 Net sales, EUR million Net sales: rolling 12 months Net sales by segment in Q1/2022 13% 12% 12% 11% 9% 358 341 326 101.3 312 298 14.4% 91.5 84.3 82.4 82.7 20.5 20.2 20.2 43.2% 19.9 18.9 42.4% Finland Sweden Norway Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q1/21 Q2/21 Q3/21 Q4/21 Q1
Slide 7: Growth is 20%, equivalent to 44% on a 2-year basis
Growth is 20%, equivalent to 44% on a 2-year basis Group net sales growth, Group net sales growth, 1 year basis 2 year basis 44% 21% 42% 20% 20% 20% 40% 40% 19% 19% 17% 35% 16% 32% 31% 31% 28% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2020 FY2021 FY2020 FY2021 Interim Report Octobe
Slide 8: Best quarterly EBITDA and EBITDA % in Musti Group history
Best quarterly EBITDA and EBITDA % in Musti Group history 25.0 50.0 % 45.0 % 19.8 20.0 40.0 % 17.2 35.0 % 15.0 15.7 15.0 30.0 % 13.1 12.9 12.0 11.1 11.2 25.0 % 9.9 9.9 10.0 8.8 8.2 19.5% 18.6% 18.8% 19.6% 20.0 % 15.5% 17.2% 17.1% 16.2% 15.9% 15.6% 14.9% 14.0% 14.5% 15.0 % 5.0 10.0 % 5.0 % 0.0 0.0 %
Slide 9: Record-high gross margin and EBITA in Q1
Record-high gross margin and EBITA in Q1 • The Group’s adjusted EBITA increased by 25.4% Gross margin, % Adjusted EBITA, EUR million to EUR 13.3 million (EUR 10.6 million). Adjusted EBITA was the best quarterly adjusted 14 13.3 EBITA in Musti Group history. The increase was result of strong season s
Slide 10: Q1 EBITA up 25% from comparison period and 71% on 2-year basis
Q1 EBITA up 25% from comparison period and 71% on 2-year basis Adjusted EBITA, EUR million Adjusted EBITA margin, % Adjusted EBITA margin, % Q1’22 Q2’21 Q3’21 Q4’21 71% 61% 75% 61% 14 14% FY19: 8.9% 13% 12 12% FY20: 10.5% 10 11% 8 10% FY21: 10.8% 9% 6 8% 4 7% 2 6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19 6.0 4.
Slide 11: Segments
Segments 11
Slide 12: Finland: Net sales increased by 12.1% to EUR 43.8 million
Finland: Net sales increased by 12.1% to EUR 43.8 million Net sales, EUR million, Adjusted EBITA, EUR million • Net sales in Finland increased by 12.1% to EUR 43.8 million (EUR 39.1 million) with like-for-like 10.4 11.8% 10.6% 10.7% 9.2% 4.1% 10.0 9.9 growth of 4.1% against high comparable figures 1
Slide 13: Sweden: Strong sales and profitability
Sweden: Strong sales and profitability Net sales, EUR million, Adjusted EBITA, EUR million • Net sales in Sweden increased by 20.5% to EUR 10. 0 43.0 million (EUR 35.7 million) driven by improved like-for-like growth of 11.6% and 9.0 new stores opened or acquired. The sales 8.0 43.0 8.0 growth was s
Slide 14: Norway: Net sales increased by 52.3% to EUR 14.6 million
Norway: Net sales increased by 52.3% to EUR 14.6 million Net sales, EUR million 3.5 Adjusted EBITA, EUR million • Net sales in Norway increased by 52.3% to EUR 14.6 million (EUR 9.6 million), driven by 3.0 like-for-like growth of 20.8% in line with the 3.0 trend exhibited in earlier quarters, and ra
Slide 15: Financial position
Financial position 15
Slide 16: Good cash flow, steady balance sheet and improved loan portfolio
Good cash flow, steady balance sheet and improved loan portfolio • In Q1, net cash flow from operating activities totaled EUR 13.2 million (EUR 15.9 million). Cash flow from operating Gearing Compared to previous year, cash flow was burdened activities, EUR million as net working capital increased b
Slide 17: Group long-term financial targets unchanged
Group long-term financial targets unchainged 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 w
Slide 18: Summary
Summary • Group net sales increased by 20.2% to EUR 101.3 million. The increase was largely due to the increasing number of customers together with an increased number of directly operated stores. Like- for-like growth amounted to 9.2%. • Store sales increased by 24.9% to EUR 77.9 million, driven by
Slide 19: Thank you!
More information Half-Year Financial Report for October 2021 – March David Rönnberg, CEO 2022 will be published on +46 70 896 6552 10 May 2022. 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
Slide 20: Appendix
Appendix 20
Slide 21: 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 1.3 million loyal model2 #1 in Nordics, customers, unique rich 320 stores, 21.5% of net 25% market share1 data on Nordic pets and sales generated through Pet Parents onli
Slide 22: 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 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 ecosystem - All you need is Musti
Musti Group ecosystem - All you need is Musti A LOYALTY CLUB & BREEDERCLUB © PUPPYCLUB & PUPPY DATES QO PET SPA PREMIUM FOOD ~@ w TRAINING ACCESSORIES @ cP VET CARE CONVENIENT SHOPPING & & INSURANCE FAST DELIVERIES &&
Slide 25: Musti Group has 1.3 million loyal customers
Musti Group has 1.3 million loyal customers • Number of loyal customers grew to 1,340 139 stores, thousand by 31 December 2021 (1,189 all directly thousand on 31 December 2020). operated • On 31 December 2021 Musti had 127 stores 320 stores, of which 294 were directly of which 101 operated. directly
Slide 26: Key figures
Key figures Q1 Q1 EUR millions or as indicated 10-12/21 10-12/20 Change% FY2021 Net sales 101.3 84.3 20.2% 340.9 LFL sales growth, % 9.2% 13.1% 11.8% LFL store sales growth, % 6.6% 8.0% 8.8% Online share, % 21.5% 21.6% 23.1% Adjusted EBITA 13.3 10.6 25.4% 36.8 Adjusted EBITA margin, % 13.1% 12.6% 10
Slide 27: 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 28: 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