Musti Group (MUSTI) Q5 2024 summary

Executive summary

• Net sales for Q5 2024 rose 5.6% year-over-year to EUR 122.2 million, driven by online sales and the Pet City acquisition; like-for-like sales grew 1.2%, and online like-for-like sales grew up to 8.8%.

• For the 15-month period (Oct 2023–Dec 2024), net sales reached EUR 560.6 million, with adjusted EBITDA at EUR 81.6 million; Q5 adjusted EBITDA was EUR 17.2 million, down 16%.

• Gross margin declined to 44.0% from 45.9% year-over-year, mainly due to pricing campaigns, sales mix, and lower share of own brands.

• Pet City contributed EUR 3.2 million in December; full-quarter consolidation would have increased group net sales by 10.7%.

• Number of stores increased to 415, with loyal customers rising to 1,866 thousand.

Financial highlights

• Q5 net sales: EUR 122.2 million (up 5.6% year-over-year); 15-month net sales: EUR 560.6 million.

• Adjusted EBITDA margin for Q5 2024 was 14.1% (down from 17.7%); for the 15-month period, 14.6%.

• Net cash flow from operating activities in Q5 was EUR 7.6 million; for the 15-month period, EUR 46.9 million.

• Net debt at period end was EUR 187.5 million, with gearing at 112.3% and net debt/EBITDA at 3.1x.

• Cash and cash equivalents at period end: EUR 11.8 million.

Outlook and guidance

• Board withdrew long-term financial targets in April 2024, shifting focus to sustainable growth and value creation under new majority owner.

• Dividend policy amended: net profit to be used for growth and investments; no dividend expected.

• Gross margin expected to normalize before summer 2025 as headwinds ease; market anticipated to return to long-term average growth in 2025.

• Macro forecasts indicate improving consumer spending power in the Nordics, with lower interest rates and wage increases.