Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q2 2021 Earnings Presentation
25 slides from Musti Group Oyj's earnings presentation, May 4, 2021
Slide 1: Half-Year Financial Report Q2 1 October 2020–31 March 2021
Half-Year Financial Report Q2 1 October 2020–31 March 2021 4 May 2021 CEO David Rönnberg CFO Robert Berglund
Slide 2: Agenda
Agenda • Group development • Segments • Financials and market outlook Half-Year Financial Report Q2 October 2020 – March 2021
Slide 3: Accelerating growth
Accelerating growth 3
Slide 4: Highlights Q2/2021
Highlights Q2/2021 • Group net sales totaled EUR 82.4 million (68.4 million), an increase of 20.5%. • Like-for-like sales growth was 11.6%. • Adjusted EBITA was EUR 7.7 (5.5) million, up by 39.0%, including EUR 0.8 million short- term negative impact relating to warehouse consolidation. • Adjusted E
Slide 5: Q2: Net sales increased by 20.5%
Q2: Net sales increased by 20.5% Net sales, EUR million Net sales: rolling 12 months Net sales by segment in Q2/2020 312 298 15% 12% 12% 13% 12% 284 272 12% 262 84.3 82.4 76.9 68.4 68.8 20.5 19.9 45% 19.2 16.6 15.9 43% Finland Sweden Norway Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21
Slide 6: Q2: Group adjusted EBITA increased by 39.0%
Q2: Group adjusted EBITA increased by 39.0% • Adjusted EBITA was EUR 7.7 (5.5) million, up Operating profit1, EUR million 10.0 Adjusted EBITA, EUR million by 39.0%, including EUR 0.8 million short- term negative impact relating to warehouse 9.0 8.4 10.6 10.1 consolidation. 8.0 7.8 10 • The improveme
Slide 7: Musti Group is gaining share in a growing market
Musti Group is gaining share in a growing market Large and growing Nordic opportunity - Highlighting three factors Sweden new puppy registrations, YoY growth 1 Pet adoption increased in 2020 and continues on an elevated level 40% • Increased number of pet owning households 31% • Expanding the market
Slide 8: Updated financial targets
Updated financial targets 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- to long-term adjusted EBITA margin of at least 13 per cent with steadily Profitability improving profil
Slide 9: Segments
Segments 9
Slide 10: Finland: Adjusted EBITA increased by 11.1% to EUR 8.4 million
Finland: Adjusted EBITA increased by 11.1% to EUR 8.4 million Net sales, EUR million, Adjusted EBITA, EUR million • Net sales in Finland increased by 11.9% to EUR 37.1 million (EUR 33.2 million) driven by like- 10.0 9.7% 6.2% 9.7% 11.8% 10.6% for-like growth of 10.6% and growth from the 10 9.4 store
Slide 11: Sweden: Strong sales growth of 19.6% in Q2
Sweden: Strong sales growth of 19.6% in Q2 7 Net sales, EUR million, Adjusted EBITA, EUR million • Net sales increased by 19.6% to EUR 35.6 million (29.8) driven by increased number of directly 6 5.6 operated stores, like-for-like growth of 6.8% and 19.0% 13.0% 11.5% 9.5% 6.8% strengthening of the S
Slide 12: Norway: Strong growth in both sales and profitability
Norway: Strong growth in both sales and profitability Net sales, EUR million Adjusted EBITA, EUR million • Net sales in Norway increased by 77.6% to 2 EUR 9.7 million (EUR 5.5 million), driven by 1.8 30.2% 44.8% 35.3% 40.4% 42.0% strong like-for-like growth of 42.0% and ramp- 1.6 up of the stores op
Slide 13: Sweden and Norway continue approaching Finland profitability
Sweden and Norway continue approaching Finland profitability Country adj. EBITA margin, % Convergence trend continued in Q2’21 24% 24% 24% Q2'20 Q2'21 22% Finland 22.9 % 22.8 % Benchmark 18% 14% 12% 16.0 % 9% 7% 12.5 % Sweden Integration 4% 9.8 % Norway -6% 2.5 % Ramp-up FY2018 FY2019 FY2020 H1 FY20
Slide 14: Financial position
Financial position 14
Slide 15: Net cash flow from operating activities totaled EUR 14.0 million in Q2
Net cash flow from operating activities totaled EUR 14.0 million in Q2 Cash flow from operating Gearing, % • Net cash flow from operating activities activities, EUR million totaled EUR 14.0 million (EUR 4.7 million). 20.6 20.0 200 .0% • Gearing at the end of the reporting period 180 .0% was 70.7% (3
Slide 16: Summary
Summary • Net sales increased by 20.5% to EUR 82.4 million, largely due to like-for- like growth in all countries, mainly driven by the increasing number of new customers, and an increased number of directly operated stores. • Store sales increased by 21.5% to EUR 59.3 million, driven by an increase
Slide 17: Thank you!
More information Interim Report October 2020-June 2021 David Rönnberg, CEO will be published on +46 70 896 6552 10 August 2021 david.ronnberg@mustigroup.com Robert Berglund, CFO +358 50 534 8657 robert.berglund@mustigroup.com Essi Nikitin, Head of IR and Communications +358 50 581 1455 essi.nikitin@
Slide 18: Appendix
Appendix 18
Slide 19: 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 1.2 million loyal model2 #1 in Nordics, customers, unique rich 301 stores, 24.4% of net 24% market share1 data on Nordic pets and sales generated through Pet Parents onli
Slide 20: 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 21: 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 22: Musti Group has 1.2 million loyal customers
Musti Group has 1.2 million loyal customers 131 stores 125 stores of which of which 87 115 directly directly operated • Number of loyal customers grew to 1,222 operated 45 stores, thousand by 31 March 2021 (1,151 thousand on all directly 30 September 2020). operated • On 31 March 2021 Musti had 301
Slide 23: 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 24: Key figures
Key figures Q2 Q2 EUR millions or as indicated Change% FY2020 1–3/21 1-3/20 Net sales 82.4 68.4 20.5 284.4 LFL sales growth, % 11.6% 14.8% 11.5% LFL store sales growth, % 8.6% 10.0% 7.3% Online share, % 24.4% 23.7% 22.5% Adjusted EBITA 7.7 5.5 39.0 29.8 Adjusted EBITA margin, % 9.3% 8.1% 10.5% Opera
Slide 25: 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