Musti Group Oyj · OMXHEX:MUSTI
Musti Group Oyj — Q4 2021 Earnings Presentation
28 slides from Musti Group Oyj's earnings presentation, Nov 16, 2021
Slide 1: Financial Statements Release 1 October 2020–30 September 2021
Financial Statements Release 1 October 2020–30 September 2021 16 November 2021 CEO David Rönnberg CFO Toni Rannikko
Slide 2: Strong growth with best-ever quarterly EBITA
Strong growth with best-ever quarterly EBITA 2
Slide 3: Financial year 2021 in review
Financial year 2021 in review Strong year 2021 Q4 was best in Musti history Net sales growth Gross profit growth Highest sales in history +20% +25% 91 €m Adjusted EBITA growth Cash flow +23% 55 €m Accelerating 2-year growth Loyalty club members growth Average spend growth 42% +13% +5% Highest adj. E
Slide 4: Highlights Q4/2021
Highlights Q4/2021 • Group net sales totaled EUR 91.5 million (76.9 million), an increase of 18.9%. • Like-for-like sales growth was 10.9%. • Adjusted EBITA increased 11.2% to EUR 11.2 (10.1) million, including EUR 0.4 million short-term negative impact relating to central warehouse consolidation pr
Slide 5: Puppy registrations reached a new high
Puppy registrations reached a new high Market evidence, Sweden Q4 growth +14% Musti Group trend Q4 growth +34% New puppy registrations New puppy food customers, by calendar month 1/2018 to 9/2021 1/2018 to 9/2021 9,000 12,000 8,000 10,000 7,000 6,000 8,000 5,000 6,000 4,000 3,000 4,000 2,000 2,000 1
Slide 6: Q4: Growth continued strong, net sales increased by 18.9%
Q4: Growth continued strong, net sales increased by 18.9% Net sales by segment in Q4/2021 Net sales, EUR million Net sales: rolling 12 months 13% 12% 13% 12% 12% 11% 341 326 312 44% 91.5 298 284 84.3 82.4 82.7 43% 76.9 Finland Sweden Norway 20.5 20.2 19.2 19.9 18.9 Net sales by segment in Q4/2020 10
Slide 7: Growth is 19%, equivalent to 42% on a 2-year basis
Growth is 19%, equivalent to 42% on a 2-year basis Group net sales growth, Group net sales growth, 1 year basis 2 year basis 42% 40% 40% 21% 20% 20% 35% 19% 19% 32% 31% 31% 17% 16% 28% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2020 FY2021 FY2020 FY2021 7
Slide 8: Best quarterly EBITDA in Musti Group history
Best quarterly EBITDA in Musti Group history Full year 58.8 EURm, warehouse adjusted 60.3 EURm 20.0 40.0 % 18.0 17.2 35.0 % 15.7 16.0 15.0 30.0 % 14.0 13.1 12.9 12.0 12.0 11.1 11.2 25.0 % 9.9 9.9 10.0 8.8 8.2 19.5% 18.6% 20.0 % 18.8% 15.5% 17.2% 17.1% 16.2% 8.0 15.9% 15.6% 14.9% 14.0% 14.5% 15.0 % 6
Slide 9: Best quarterly EBITA in Musti Group’s history
Best quarterly EBITA in Musti Group’s history • The Group’s adjusted EBITA increased by 11.2% to Operating profit1, EUR million 10 Adjusted EBITA, EUR million EUR 11.2 million (EUR 10.1 million) and was the best quarterly EBITA in Musti Group history. 9 8.4 8.6 11.2 12 Adjusted EBITA included EUR 0.
Slide 10: Q4 EBITA margin development continued in line with pre-pandemic
Q4 EBITA margin development continued in line with pre-pandemic FY2020 was positively impacted by COVID-19 related exceptional cost savings Adjusted EBITA, EUR million Adjusted EBITA margin, % Adjusted EBITA margin, % Q1: 77% Q2: 61% Q3: 75% Q4: 61% 12 14% FY19: 8.9% 11 13% 10 12% FY20: 10.5% 9 8 11
Slide 11: Segments
Segments 11
Slide 12: Finland: Net sales increased by 12.0% to EUR 40.3 million
Finland: Net sales increased by 12.0% to EUR 40.3 million Net sales, EUR million, Adjusted EBITA, EUR million • Net sales in Finland increased by 12.0% to EUR 40.3 million (EUR 36.0 million) driven by like- 9.7% 11.8% 10.6% 10.7% 9.2% 10.0 for-like growth of 9.2% and growth from the 9.9 10 9.4 store
Slide 13: Sweden: Strong growth and excellent profitability
Sweden: Strong growth and excellent profitability Net sales, EUR million, Adjusted EBITA, EUR million • Net sales in Sweden increased by 18.8% to EUR 8 39.7 million (EUR 33.4 million) driven by like- 7.1 for-like growth of 10.2%. 7 • The average SEK rate strengthened in Q4 FY21 39.7 40 compared to Q
Slide 14: Norway: Net sales increased by 53.2% to EUR 11.5 million
Norway: Net sales increased by 53.2% to EUR 11.5 million Net sales, EUR million Adjusted EBITA, EUR million • Net sales in Norway increased by 53.2% to EUR 11.5 million (EUR 7.5 million), driven by 2 strong like-for-like growth of 22.0% and ramp- 1.8 up of the stores opened during the latest 1.7 11.
Slide 15: Financial position
Financial position 15
Slide 16: Net cash flow from operating activities totaled EUR 15.0 million in Q4
Net cash flow from operating activities totaled EUR 15.0 million in Q4 • In Q4, net cash flow from operating activities Cash flow from operating Gearing totaled EUR 15.0 million (EUR 20.4 million). activities, EUR million • For the financial year 2021, net cash flow 20.6 increased to EUR 54.1 millio
Slide 17: Musti Group ecosystem - All you need is Musti
Musti Group ecosystem - All you need is Musti A LOYALTY CLUB & BREEDERCLUB © PUPPYCLUB & PUPPY DATES QO PET SPA PREMIUM FOOD ~@ w TRAINING ACCESSORIES @ cP VET CARE CONVENIENT SHOPPING & & INSURANCE FAST DELIVERIES &&
Slide 18: 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 19: Summary
Summary • Net sales increased by 18.9% to EUR 91.5 million in Q4 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. Like-for-like growth amounted to 10.9%. • Store sales increased by 21.7% to
Slide 20: Thank you!
More information Interim Report for October 2021-December 2021 David Rönnberg, CEO will be published on +46 70 896 6552 8 February 2022 david.ronnberg@mustigroup.com Toni Rannikko, CFO +358 40 078 8812 toni.rannikko@mustigroup.com Essi Nikitin, Head of IR and Communications +358 50 581 1455 essi.nik
Slide 21: Appendix
Appendix 21
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 1.3 million loyal model2 #1 in Nordics, customers, unique rich 312 stores, 22.3% of net 25% market share1 data on Nordic pets and sales generated through Pet Parents onli
Slide 23: 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 24: 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 25: Musti Group has 1.3 million loyal customers
Musti Group has 1.3 million loyal customers 134 stores • Number of loyal customers grew to 1,297 of which thousand by 30 September 2021 (1,151 134 directly thousand on 30 September 2020). operated • On 30 September 2021 Musti had 128 stores 312 stores, of which 280 were directly of which 96 operated
Slide 26: Key figures
Key figures Q4 Q4 EUR millions or as indicated 7–9/21 7-9/20 Change% FY2020 FY2020 Change% Net sales 91.5 76.9 18.9 340.9 284.4 19.9 LFL sales growth, % 10.9% 12.2% 11.8% 11.5% LFL store sales growth, % 8.2% 7.9% 8.8% 7.3% Online share, % 22.3% 22.1% 23.1% 22.5% Adjusted EBITA 11.2 10.1 11.2 36.8 29
Slide 27: 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 28: 30-year track record – from traditional pet retail to full omnichannel
30-year track record – from traditional pet retail to full omnichannel 341 284 Net sales (EUR million) 247 216 170 145 • Concept development • eCommerce • Customer-centricity Operational platform and focus • Own brand products omni features • Leveraging customer data 25 78 103 FY1988 FY2010 FY2014 F