Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q1 2020 Earnings Presentation
23 slides from Musti Group Oyj's earnings presentation, Mar 3, 2020
Slide 1: Interim Report 1 October–31 December 2019
Interim Report 1 October–31 December 2019 3 March 2020 CEO David Rönnberg CFO Robert Berglund
Slide 2: Agenda
Agenda • Musti Group snapshot • Group development • Segments • Financials and market outlook Musti Group | Interim Report October–December 2019 2
Slide 3: Musti Group snapshot
Musti Group snapshot Musti Group | Interim Report October–December 2019 3
Slide 4: 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 5: 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 6: Profitable growth in all segments
Profitable growth in all segments Musti Group | Interim Report October–December 2019 6
Slide 7: Highlights in Q1/2020
Highlights in Q1/2020 • Group net sales totalled EUR 70.3 million (64.1), an increase of 9.7%. • Like-for-like sales growth was 7.7%. • Adjusted EBITA was EUR 7.8 (6.0) million, up by 30.0%. • Adjusted EBITA margin was 11.1% (9.3%). • Operating profit increased by 60.8% to EUR 5.4 (3.3) million, rep
Slide 8: Q1: The Group’s net sales increased by 9.7%
Q1: The Group’s net sales increased by 9.7% Net sales and like-for-like growth Net sales: rolling 12 months Net sales by segment in Q1/2020 246,6 252,8 8% 10% 12% 11% 11% 8% 70,3 64,1 64,5 59,0 59,0 49 % 43 % Finland Sweden Norway Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 2019 Q1/20 Net sales, EUR million % Lik
Slide 9: Profitability improved
Profitability improved Operating profit1, EUR million Adjusted EBITA, EUR million • Adjusted EBITA increased by 30.0% 7,8 and adjusted EBITA margin was 11.1%. 8,0 8,0 14,0 % 14,0 % • The improvement was mainly due to an 7,0 7,0 increase in sales combined with slightly 12,0 % 6,0 12,0 % higher gross
Slide 10: Segments
Segments Musti Group | Interim Report October–December 2019 10
Slide 11: Finland: Adjusted EBITA increased by 10.0%
Finland: Adjusted EBITA increased by 10.0% • Net sales in Finland increased to Net sales, EUR million, Adjusted EBITA, EUR million and % EUR 34.6 million (32.1) driven by like-for-like growth, % 40,0 % like-for-like growth of 4.0% and 4.0% 10 growth from three new stores 35,0 % 9.1% 8,7 34,6 opened
Slide 12: Sweden: 10.5% like-for-like growth in Q1
Sweden: 10.5% like-for-like growth in Q1 • Net sales in Sweden increased by Net sales, EUR million, Adjusted EBITA, EUR million and % 6.2% driven by like-for-like like-for-like growth, % 6 25,0 % growth of 10.5% partly offset by weakening SEK rate and closure 10.0 % 10.5 % 5 of three stores during F
Slide 13: Norway: Expansion of store network continued
Norway: Expansion of store network continued Net sales, EUR million, Adjusted EBITA, EUR million and % • Net sales in Norway increased by like-for-like growth, % 50.2% driven by strong like-for-like 1,2 25,0 % growth and ramp-up of the 11 stores opened during FY19. 21.7% 1 20,0 % 7 • Adjusted EBITA
Slide 14: Financials and market outlook
Financials and market outlook Musti Group | Interim Report October–December 2019 14
Slide 15: Financial position and cash flow
Financial position and cash flow • Net cash flow from operating Cash flow from operating Gearing, % activities totalled EUR 14.7 million (14.8). activities, EUR million • Gearing at the end of Q1 was 123.6% 14,8 14,7 200,0 % (30 Sep 2019: 135.4%). 180,0 % • Net debt amounted to EUR 126.3 160,0 % 135
Slide 16: Market outlook and financial targets
Market outlook and financial targets As a result of the trend of Pet Parenting, people are spending more on higher quality and more premium food, as well as a more Financial targets diverse range of products and services. Musti believes it is able to Sales to reach at least EUR 350 million by the co
Slide 17: Summary
Summary • Strong first quarter with profitable growth in all segments. • Net sales growth was mainly driven by the increased number of customers. The strong performance shows especially in the like-for-like store sales growth of 7.2%. • The adjusted EBITA margin improved to 11.1 percent driven by st
Slide 18: Thank you!
More information Half-year Financial Report will be David Rönnberg, CEO published on +46 70 896 6552 david.ronnberg@mustigroup.com 6 May 2020 Robert Berglund, CFO +358 50 534 8657 robert.berglund@mustigroup.com www.mustigroup.com/investors Twitter @MustiGroup Thank you! Musti Group | Interim Report
Slide 19: Appendix
Appendix Musti Group | Interim Report October–December 2019 19
Slide 20: Key figures
Key figures Q1 Q1 EUR millions or as indicated Change % FY2019 10–12/19 10–12/18 Net sales 70.3 64.1 9.7 246.6 LFL sales growth, % 7.7% 10.2% 11.2% LFL store sales growth, % 7.2% 6.5% 7.8% Online share, % 19.5% 19.8% 20.7% Adjusted EBITA 7.8 6.0 30.0 21.9 Adjusted EBITA margin, % 11.1% 9.3% 8.9% Ope
Slide 21: Over 1 million loyal customers
Over 1 million loyal customers 127 stores of which 110 directly = Own stores operated • Number of loyal customers grew = Franchise stores 121 stores to 1,052 thousand (917 thousand). of which 69 directly • At 31 December 2019 Musti had operated 281 stores (272), of which 212 (198) were directly oper
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: 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