Musti Group (MUSTI) Q2 2025 earnings summary

Executive summary

• Net sales grew 17% year-over-year to EUR 121.7 million for the quarter, with growth across all markets and a boost from the Pet City acquisition in the Baltics.

• Like-for-like sales increased 5.7% year-over-year, reversing a prior decline.

• Adjusted EBITDA rose to EUR 12.9 million, with margin at 10.6%, impacted by growth and integration costs.

• Gross margin improved to 43.8%, supported by a higher share of own and exclusive brands.

• Store network expanded to 419 locations, mainly from the Pet City acquisition.

Financial highlights

• Net sales reached EUR 121.7 million, up from EUR 104.0 million year-over-year.

• Adjusted EBITDA was EUR 12.9 million, up from EUR 12.2 million, with a margin of 10.6%.

• Gross margin increased to 43.8% from 43.3% year-over-year.

• Operating cash flow turned positive at EUR 11.4 million, up from EUR -3.3 million.

• Investments in tangible and intangible assets totaled EUR 5.9 million in the quarter.

Outlook and guidance

• Continued focus on integrating the Baltics, expanding store network, and increasing online, spa, and vet clinic presence.

• Market expected to return to long-term growth of 4% in 2025, supported by stabilizing pet population and improving consumer spending.

• Aim to bring profitability in all countries to Finland's level, with Norway closer to that benchmark than Sweden.

• Further geographical expansion under review, with Portugal and Spain as potential markets.

• No dividend expected as profits are allocated to growth and investments.