Musti Group (MUSTI) Q1 2025 earnings summary

Executive summary

• Net sales rose 11.8% year-over-year to EUR 119.8 million, driven by the Pet City acquisition and market rebound in the Nordics.

• Like-for-like sales growth was 2.4%, with online like-for-like sales up 6.6% and customer numbers up 1.0% to 1,853 thousand.

• Adjusted EBITDA fell 15.1% to EUR 12.7 million, impacted by weak consumer climate, gross margin pressure, and strategic investments.

• Gross margin declined to 42.5% from 43.9% year-over-year, affected by promotional investments and Pet City integration.

• Integration of Pet City in the Baltics progressed smoothly, supporting growth and customer engagement.

Financial highlights

• Adjusted EBITDA: EUR 12.7 million (-15.1% year-over-year), margin 10.6% (14.0%).

• Adjusted EBITA: EUR 2.7 million (-59.4%), margin 2.2% (6.1%).

• Operating cash flow improved to EUR 18.7 million from EUR 7.2 million in the prior year.

• Net loss for the period was EUR -3.5 million (vs. EUR -4.8 million prior year).

• Store count increased to 414, mainly due to Pet City acquisition.

Segment performance

• Finland: Net sales up 1.8% to EUR 47.4 million; adjusted EBITDA down 4.0% to EUR 10.7 million; margin 22.7%.

• Sweden: Net sales up 2.8% to EUR 44.8 million; adjusted EBITDA down 17.2% to EUR 7.3 million; margin 16.3%.

• Norway: Net sales up 12.0% to EUR 19.1 million; adjusted EBITDA down 7.2% to EUR 3.3 million; margin 17.5%.

• New Markets (Baltics): Net sales EUR 8.5 million; adjusted EBITDA EUR 0.5 million; margin 5.6%.

• Rolling 12-month average spend per loyal customer increased to EUR 215.8.