Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — FY2020 Earnings Presentation
25 slides from Musti Group Oyj's earnings presentation, Nov 12, 2020
Slide 1: Financial Statements Release 1 October 2019–30 September 2020
Financial Statements Release 1 October 2019–30 September 2020 12 November 2020 CEO David Rönnberg CFO Robert Berglund
Slide 2: Agenda
Agenda • Group development • Segments • Financials and market outlook Musti Group | Financial Statements release October 2019 – September 2020 2
Slide 3: Continued strong momentum
Continued strong momentum Musti Group | Financial Statements release October 2019 – September 2020 3
Slide 4: Highlights Q4/2020
Highlights Q4/2020 • Group net sales totaled EUR 76.9 million (64.5), an increase of 19.2%. • Like-for-like sales growth was 12.2%. • Adjusted EBITA was EUR 10.1 million (7.0), up by 44.6%. • Adjusted EBITA margin was 13.1% (10.8%). • Operating profit increased by 63.5% to EUR 7.8 million (4.8), rep
Slide 5: Highlights FY2020
Highlights FY2020 • Group net sales totaled EUR 284.4 million (246.6), an increase of 15.3%. • Like-for-like sales growth was 11.5%. • Adjusted EBITA was EUR 29.8 million (21.9), up by 36.2%. • Adjusted EBITA margin was 10.5% (8.9%). • Operating profit increased by 56.5% to EUR 19.6 million (12.5),
Slide 6: Covid-19 pandemic has boosted the demand for puppies and kittens
Covid-19 pandemic has boosted the demand for puppies and kittens Clear growth in Swedish registered puppies continues, September 2020 registrations were up +19% compared to September 2019 Market evidence from Sweden Musti group trend New puppy registrations YTD Jan-Sep New puppy food customers, year
Slide 7: Q4: Net sales increased by 19.2% as a result of a strong like-for-like growth
Q4: Net sales increased by 19.2% as a result of a strong like-for-like growth and increased number of directly operated stores Net sales, EUR million Net sales: rolling 12 months Net sales by segment in Q4/2020 284 13% 8% 15% 12% 12% 272 253 262 76.9 247 10% 70.3 68.4 68.8 64.5 47% 43% Finland Swede
Slide 8: Q4: Group adjusted EBITA increased by 44.6%
Q4: Group adjusted EBITA increased by 44.6% • Adjusted EBITA increased by 44.6% Operating profit1, EUR million 9 Adjusted EBITA, EUR million to EUR 10.1 million (7.0) and 7.8 adjusted EBITA margin was 13.1% 8 10.1 (10.8%). 7 10 • The improvement was mainly due to the increase in sales, partly offset
Slide 9: Segments
Segments Musti Group | Financial Statements release October 2019 – September 2020 9
Slide 10: Finland: Strong net sales and result development in Q4
Finland: Strong net sales and result development in Q4 • Net sales in Finland increased by 11.5% to Net sales, EUR million, Adjusted EBITA, EUR million EUR 36.0 million (32.3) driven by like-for- like growth of 9.7% and growth from the 11.2% 4.0% 9.7% 6.2% 9.7% 10 9.4 stores opened or acquired durin
Slide 11: Sweden: Strong profitability with 70.8% growth in adjusted EBITA in Q4
Sweden: Strong profitability with 70.8% growth in adjusted EBITA in Q4 6 • Net sales increased by 21.3% to EUR Net sales, EUR million, Adjusted EBITA, EUR million 33.4 million (27.6) driven by like-for- 4.9 like growth of 11.5%. Both stores and 5 12.9% 10.5% 19.0% 13.0% 11.5% online generated good l
Slide 12: Norway: Strong sales growth with clear EBITA margin improvement
Norway: Strong sales growth with clear EBITA margin improvement 1.4 Net sales, EUR million Adjusted EBITA, EUR million • Net sales in Norway increased by 59.8% to EUR 7.5 million (4.7), 1.2 27.0% 21.7% 30.2% 44.8% 35.3% 1.1 driven by strong like-for-like growth 1.0 7.5 of 35.3% and ramp-up of new 8
Slide 13: Financials and market outlook
Financials and market outlook Musti Group | Financial Statements release October 2019 – September 2020 13
Slide 14: Net cash flow from operating activities increased to EUR 20.6 million in Q4
Net cash flow from operating activities increased to EUR 20.6 million in Q4 • Net cash flow from operating activities totaled Cash flow from operating EUR 20.6 (10.0) million. activities, EUR million Gearing, % 20.6 • Gearing at the end of the reporting period was 20.0 61.8% (30 September 2019: 135.
Slide 15: Market outlook and financial targets
Market outlook and financial targets As a result of the Pet Parenting trend, people are spending more on higher quality and more premium food, as well as a more diverse range Financial targets of products and services. This underlying trend that drives the long-term structural growth of the pet care
Slide 16: Summary
Summary • The fourth quarter of July-September proved again the strengths and resilience of Musti’s business model. • Group net sales increased by 19.2% to EUR 76.9 million (64.5). The increase was largely due to like-for-like growth in all countries, mainly driven by the increasing number of new cu
Slide 17: Thank you!
More information Interim Report Q1 David Rönnberg, CEO October 2020- +46 70 896 6552 December 2020 will david.ronnberg@mustigroup.com be published on Robert Berglund, CFO 9 February +358 50 534 8657 2021 robert.berglund@mustigroup.com Essi Nikitin, Head of IR and Communications +358 50 581 1455 essi
Slide 18: Appendix
Appendix Musti Group | Financial Statements release October 2019 – September 2020 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 customers, model2 #1 in Nordics, unique rich data on Nordic 293 stores, 24% market share1 pets and Pet Parents 22.1% of net sales generated through onli
Slide 20: 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 Further expansion and Store rollout with strong the most mature country convergence in efficiency ramp up and
Slide 21: Key figures
Key figures Q4 Q4 EUR millions or as indicated Change% Change% 7–9/20 7–9/19 FY2020 FY2019 Net sales 76.9 64.5 19.2 284.4 246.6 15.3 LFL sales growth, % 12.2% 12.7% 11.5% 11.2% LFL store sales growth, % 7.9% 11.3% 7.3% 7.8% Online share, % 22.1% 20.2% 22.5% 20.7% Adjusted EBITA 10.1 7.0 44.6 29.8 21
Slide 22: Musti Group has 1.2 million loyal customers
Musti Group has 1.2 million loyal customers 129 stores of which 112 directly operated • Number of loyal customers increased to 1,151 thousand (1,018 thousand on 30 September 2019). 125 stores of which 80 • At 30 September 2020 Musti had 39 stores, directly 293 stores (277), of which 231 all directly
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 • Hair and nail trimming parents themselves offering with
Slide 24: 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 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