Slide 1: Financial Statements Review 1 October 2022–30 September 2023
Financial Statements Review 1 October 2022–30 September 2023 9 November 2023 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Summary Q4 and FY2023
Summary Q4 and FY2023 October 2022– Q4, July – September 2023 September 2023 Net sales Growth excl. currency effects Like-for-like sales growth Net sales EUR 110.4m 14.4% 10.0% EUR 425.7m Own and exclusive brands Cash flow Online like-for-like growth Cash flow 52.0% EUR 29.0m 20.7% EUR 79.6m Loyalty
Slide 3: Update on recall of two Smaak grain-free products
Update on recall of two Smaak grain-free products • After the reporting period, Musti Group has withdrawn specific Glycoalkaloid in potato batches of two Smaak grain–free products from our markets ▪ Glycoalkaloids occur naturally in potatoes • Possible cause has been established: High concentration
Slide 4: Strong growth with improved profitability
Strong growth with improved profitability 4
Slide 5: Highlights Q4/23
Highlights Q4/23 • Group net sales totaled EUR 110.4 (101.8) million, an increase of 8.4%, and 14.4% excluding changes in currency exchange rates • Like-for-like growth, which is calculated in local currencies, amounted to 10.0% (4.7%) • Online like-for-like continued strong at 20.7% • Gross margin
Slide 6: Food and consumables categories continue in double digit growth
Food and consumables categories continue in double digit growth Discretionary categories delivered positive YoY growth in local currency Local currency growth Q4/23 product sales mix 25% Discretionary 24% 20% 15% Food 55% 10% Consumables 21% 5% 0% • Food and consumables categories represented >75% o
Slide 7: Q4 net sales grew 8.4% to EUR 110.4 million, FX neutral growth 14.4%
Q4 net sales grew 8.4% to EUR 110.4 million, FX neutral growth 14.4% Quarterly net sales, EUR million FY net sales, EUR million Net sales: rolling 12 months 417 426 400 409 11.3% 8.9% 10.0% 8.2% 8.4% 15.3% 19.9% 14.7% 8.9% 391 425.7 110.4 110.4 391.1 101.8 101.7 103.3 340.9 284.4 14% Q4/22 Q1/23 Q2/
Slide 8: Growth 8% equivalent to 14% in constant currency, with steady 10% LFL
Growth 8% equivalent to 14% in constant currency, with steady 10% LFL 1Y growth LFL growth (local currency) FX rate impact on EUR sales growth, Q4/23 [FY23] 21% 20% • Group: -6% [-6%] 20% 20% 19% 19% • Sweden: -10% [-9%] • Norway: -13% [-13%] 17% 16% 16% 15% 13% 12% 12% 11% 11% 12%12% 11% 11% 10% 10
Slide 9: Gross margin increased year-on-year
Gross margin increased year-on-year • Gross margin increased to 46.0% Gross margin % O&E % (45.2%). • Gross margin increased due to supply chain performance and production integration, despite 46.0% 52.0% unfavorable currency exchange rate. • The share of sales of own and exclusive brands remained a
Slide 10: Group adjusted EBITA increased 23.7% to EUR 12.6 million in Q4/23
Group adjusted EBITA increased 23.7% to EUR 12.6 million in Q4/23 Quarterly adjusted EBITA, EUR million FY adjusted EBITA, EUR million • Group adjusted EBITA increased by 23.7% to EUR 12.6 (10.2) million. 14 12.6 13% • The increase was due to good traffic, production 42.6 11.7 integration, price inc
Slide 11: Segments
Segments 11
Slide 12: Net sales in Finland increased by 12.7% to EUR 50.0 million in Q4/23
Net sales in Finland increased by 12.7% to EUR 50.0 million in Q4/23 Net sales, EUR million Quarterly adjusted EBITA, FY adjusted EBITA, EUR million EUR million 41.5 • Net sales in Finland increased by 12.7% to EUR 10.1% 8.5% 10.9% 15.6% 12.7% 50.0 (44.3) million. 12.1 36.1 34.3 12 33.0 • Sales grow
Slide 13: Net sales in Sweden increased by 2.2% to EUR 43.4 million in Q4/23
Net sales in Sweden increased by 2.2% to EUR 43.4 million in Q4/23, FX neutral growth 11.9% Net sales, EUR million Quarterly adjusted EBITA, FY adjusted EBITA, EUR million EUR million 10 26.9 • Net sales in Sweden increased by 2.2% to EUR 43.4 7.0% 4.3% 7.2% 1.0% 2.2% 9 25.7 (42.5) million. 44.8 43.
Slide 14: Net sales in Norway increased by 13.1% to EUR 17.0 million in Q4/23
Net sales in Norway increased by 13.1% to EUR 17.0 million in Q4/23, FX neutral growth 26.5% Net sales, EUR million Quarterly adjusted EBITA, FY adjusted EBITA, EUR million 4 EUR million • Net sales in Norway increased by 13.1% to EUR 31.1% 23.7% 15.5% 7.1% 13.1% 17.0 (15.0) million, driven by like-
Slide 15: Financial position
Financial position 15
Slide 16: Cash flow from operating activities increased to EUR 29.0 million in Q4/23
Cash flow from operating activities increased to EUR 29.0 million in Q4/23 • In Q4, the net cash flow from operating activities totaled EUR 29.0 Cash flow from operating activities, EUR million (13.6) million, driven by the favorable development of the net working capital. • Gearing at the end of th
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: Strong growth with improved profitability
Summary: Strong growth with improved profitability • Q4 concluded the financial year with 14.4% local currency Q4 FY22 – Q4 FY23 growth and 10.0% like-for-like growth Net sales and gross margin % Adj. EBITA, EURm and % Cash flow, EURm • Food and consumables that make up majority of our sales remaine
Slide 19: Thank you!
Interim Report for October 2023 – December 2023 More information will be published on 1 February 2024. David Rönnberg, CEO +46 70 896 6552 david.ronnberg@mustigroup.com Toni Rannikko, CFO +358 40 078 8812 toni.rannikko@mustigroup.com www.mustigroup.com/investors Twitter @MustiGroup Thank you! 19
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 (330) Omni = Franchised (12) .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 342 stores, 22.5% 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 • Diverse, high-quality offering • Seamless omnichannel • Hair and nail trimming • 93% of Musti’s staff are business model ensuring tota
Slide 24: Musti Group has 1.5 million loyal customers
Musti Group has 1.5 million loyal customers • The number of loyal customers increased by 6.1% to 1,543 thousand (1,454 thousand on 30 September 2022). • On 30 September 2023, Musti Group had 136 stores, 342 stores, of which 330 directly operated. all directly operated • In October 2022 – September 2
Slide 25: Key figures
Key figures 7-9/2023 7-9/2022 Change % FY2023 FY2022 Change % EUR millions or as indicated Net sales 110.4 101.8 8.4% 425.7 391.1 8.9% LFL sales growth, % 10.0% 4.7% 9.5% 6.7% LFL store sales growth, % 7.1% 2.4% 6.7% 4.2% Online share, % 22.5% 21.3% 23.0% 22.2% Adjusted EBITDA 20.6 17.6 17.3% 73.6 6
Slide 26: 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 27: 35-year track record – from traditional pet retail to full omnichannel
35-year track record – from traditional pet retail to full omnichannel 426 391 341 284 247 216 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