Musti Group (MUSTI) Q4 2024 earnings summary

Executive summary

• Net sales reached EUR 438.4 million, up 3.0–3.9% year-over-year, with like-for-like growth of 1.1% and online sales up 9.4–10.4%.

• Customer base grew by 3.0% to 1,861 thousand, with store network expanding to 351 locations.

• Adjusted EBITDA declined 12.5% to EUR 64.4 million, with margin down to 14.7–14.8% due to pricing investments and inflation.

• Gross margin fell to 43.2–44.1%, mainly from price investments, campaigns, and product mix.

• Acquisition in the Baltics (Pet City) marks the start of geographical expansion under new majority owner Sonae.

Financial highlights

• Q4 net sales were EUR 111.5 million, up 1.0% year-over-year; like-for-like Q4 sales down 0.9%.

• Adjusted EBITDA for the year was EUR 64.4 million; Q4 adjusted EBITDA was EUR 16.5 million, down 19.8%.

• Net cash flow from operating activities for the year was EUR 39.4 million, impacted by EUR 13.9 million in non-recurring costs.

• Net debt at period end was EUR 154.0 million, with gearing at 93.1% and cash position of EUR 25.6 million.

• Investments in tangible and intangible assets totaled EUR 14.4 million for the year.

Outlook and guidance

• Board withdrew long-term financial targets in April 2024; focus is on sustainable growth and investments.

• No dividend distribution planned; profits to be reinvested in business growth and expansion.

• Management expects the pet care market to rebound to long-term growth trends by 2025.