Musti Group (MUSTI) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased by 0.7% to EUR 104.0 million, with like-for-like growth at -2.6% and online sales up 7.4% amid a weak consumer climate.

• Adjusted EBITDA dropped 27.8% to EUR 12.5 million, with margin down to 12.0% from 16.7%.

• Adjusted EBITA fell 59.4% to EUR 3.9 million, margin at 3.7%, due to gross margin pressure and higher operating expenses.

• Non-recurring costs from a public tender offer, product recall, and incentive plan changes significantly impacted profitability and cash flow.

• Loyalty club membership grew by 3.5% year-over-year to 1,575 thousand; total stores reached 350.

Financial highlights

• Group net sales for October 2023–June 2024 reached EUR 326.9 million, up 5.0% excluding currency effects.

• Own and exclusive brands accounted for 51.6% of sales.

• Adjusted EBITDA for the nine-month period was EUR 47.9 million.

• Cash flow from operating activities for the nine months totaled EUR 19.5 million.

• Net debt at period end was EUR 161.6 million; gearing 99.9%; equity ratio 40.1%.

Segment performance

• Finland: Q3 net sales fell 5.2% to EUR 45.0 million; adjusted EBITDA down 17.9% to EUR 10.5 million; adjusted EBITA down 24.2% to EUR 7.6 million; margin 16.9%.

• Sweden: Q3 net sales rose 2.6% to EUR 42.1 million; adjusted EBITDA down 18.6% to EUR 7.0 million; adjusted EBITA down 33.5% to EUR 4.0 million; margin 9.4%.

• Norway: Q3 net sales up 14.3% to EUR 16.9 million; adjusted EBITDA up 11.8% to EUR 3.8 million; adjusted EBITA up 10.9% to EUR 2.2 million; margin 13.2%.

• Group functions: Q3 adjusted EBITA EUR -9.9 million, mainly due to tender offer and restructuring costs.