Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q3 2021 Earnings Presentation
26 slides from Musti Group Oyj's earnings presentation, Aug 10, 2021
Slide 1: Interim Report Q3 1 October 2020–30 June 2021
Interim Report Q3 1 October 2020–30 June 2021 10 August 2021 CEO David Rönnberg CFO Robert Berglund
Slide 2: Agenda
Agenda • Group development • Segments • Financials and market outlook Interim Report Q3 October 2020 – June 2021
Slide 3: Continuing strong growth
Continuing strong growth 3
Slide 4: Highlights Q3/2021
Highlights Q3/2021 • Group net sales totaled EUR 82.7 million (68.8 million), an increase of 20.2%. • Like-for-like sales growth was 11.6%. • Adjusted EBITA was EUR 7.3 (6.4) million, up by 13.3%. • Adjusted EBITA margin was 8.8% (9.3%). • Operating profit increased by 25.6% to EUR 5.3 (4.2) million
Slide 5: Puppy registrations continue increasing, reaching record high levels
Puppy registrations continue increasing, reaching record high levels Market evidence, Sweden Q3 growth +10% Musti Group trend Q3 growth +38% New puppy registrations New puppy food customers, by calendar month 1/2018 to 7/2021 1/2018 to 6/2021 9,000 12,000 8,000 10,000 7,000 6,000 8,000 5,000 6,000 4
Slide 6: Q3: Growth continued strong, net sales increased by 20.2%
Q3: Growth continued strong, net sales increased by 20.2% Net sales, EUR million Net sales: rolling 12 months Net sales by segment in Q3/2020 326 12% 12% 13% 12% 12% 312 298 284 12% 84.3 82.7 272 82.4 76.9 19.9 20.5 20.2 19.2 44% 68.8 16.6 44% Finland Sweden Norway Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q3/2
Slide 7: Growth trend is 20%, equivalent to 40% on a 2 year basis
Growth trend is 20%, equivalent to 40% on a 2 year basis Group net sales growth Group net sales growth 1 year basis 2 year basis 25% 45% 40% 40% 21% 20% 40% 19% 20% 35% 20% 35% 32% 31% 31% 16% 17% 30% 28% 15% 25% 10% 20% 10% 15% 5% 10% 5% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY20 FY21 FY2
Slide 8: Q3: Adjusted EBITA increased by 13.3% to EUR 7.3 million
Q3: Adjusted EBITA increased by 13.3% to EUR 7.3 million • Adjusted EBITA was EUR 7.3 (6.4) million, up by Operating profit1, EUR million 10.0 Adjusted EBITA, EUR million 13.3%, including EUR 0.3 million short-term negative impact relating to warehouse consolidation. The 9.0 8.4 10.6 10.1 efficiency
Slide 9: Q3 EBITA margin development in line with pre-pandemic periods
Q3 EBITA margin development was in line with pre-pandemic periods Comparison period Q3 FY2020 was positively impacted by COVID-19 related exceptional cost savings Adjusted EBITA, EUR million Adjusted EBITA margin, % Adjusted EBITA margin, % YTD 9 months 12 14% Q1: 77% Q2: 60% Q3: 74% 11 13% 2019: 8.
Slide 10: Segments
Segments 10
Slide 11: Finland: Net sales increased by 13.2% to EUR 36.2 million
Finland: Net sales increased by 13.2% to EUR 36.2 million Net sales, EUR million, Adjusted EBITA, EUR million • Net sales in Finland increased by 13.2% to EUR 36.2 million (EUR 32.0 million) driven by like- 10.0 6.2% 9.7% 11.8% 10.6% 10.7% for-like growth of 10.7% and growth from the 10. 0 9.4 store
Slide 12: Sweden: Strong growth in sales and profitability
Sweden: Strong growth in sales and profitability 7.0 Net sales, EUR million, Adjusted EBITA, EUR million • Net sales increased by 20.7% to EUR 36.4 million (30.1) driven by like-for-like growth of 6.0 5.6 13.0% 11.5% 9.5% 6.8% 10.2% 10.2% and strengthening of the SEK rate in Q3. 40. 0 • Adjusted EBI
Slide 13: Norway: Net sales increased by 51.9% to EUR 10.0 million
Norway: Net sales increased by 51.9% to EUR 10.0 million Net sales, EUR million Adjusted EBITA, EUR million • Net sales in Norway increased by 51.9% to 2.0 EUR 10.0 million (EUR 6.6 million), driven by 44.8% 35.3% 40.4% 42.0% 21.0% 1.8 strong like-for-like growth of 21.0% and ramp- 10.0 1.6 1.6 up o
Slide 14: Financial position
Financial position 14
Slide 15: Net cash flow from operating activities totaled EUR 10.1 million in Q3
Net cash flow from operating activities totaled EUR 10.1 million in Q3 Cash flow from operating Gearing, % • Net cash flow from operating activities activities, EUR million totaled EUR 10.1 million (EUR 2.2 million). 20.6 20.0 200 .0% • Gearing at the end of the reporting period 180 .0% was 73.6% (3
Slide 16: Group long-term financial targets
Group long-term financial targets 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 wallet. Mid-
Slide 17: Summary
Summary • Net sales increased by 20.2% to EUR 82.7 million largely due to like-for-like growth in all countries and the increasing number of new customers, together with an increased number of directly operated stores. • Store sales increased by 23.8% to EUR 59.9 million, driven by an increased numb
Slide 18: Thank you!
More information Financial Statements Release October 2020-September 2021 David Rönnberg, CEO will be published on +46 70 896 6552 16 November 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 5
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 1.3 million loyal model2 #1 in Nordics, customers, unique rich 308 stores, 24.1% 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 1.3 million loyal customers
Musti Group has 1.3 million loyal customers 133 stores 127 stores of which of which 92 117 directly directly operated • Number of loyal customers grew to 1,257 operated 48 stores, thousand by 30 June 2021 (1,151 thousand on all directly 30 September 2020). operated • On 30 June 2021 Musti had 308 st
Slide 24: Key figures
Key figures Q3 Q3 EUR millions or as indicated Change% FY2020 4–6/21 4-6/20 Net sales 82.7 68.8 20.2 284.4 LFL sales growth, % 11.6% 11.5% 11.5% LFL store sales growth, % 10.7% 4.3% 7.3% Online share, % 24.1% 25.0% 22.5% Adjusted EBITA 7.3 6.4 13.3 29.8 Adjusted EBITA margin, % 8.8% 9.3% 10.5% Opera
Slide 25: 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 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