Musti: more sales in first quarter of 2024 but facing operating loss

The Helsinki-based pet retailer posted sales of €107.2 million ($115M) from January to March 2024, a 5.5% increase compared to the same period last year.

Finland accounted for more than 4 out of 10 (43.4%) sales. Sweden (40.6%) and Norway (15.9%) followed.

E-commerce amounted to €27 million ($28.89M) in quarterly sales, accounting for more than 25% of total sales.

The increase in net sales was also driven by store expansion, with the opening of 12 directly operated stores year-on-year. “We are on a good path and in line with the plan to open 20 to 25 stores a year, primarily in Norway and Sweden,” says CEO David Rönnberg.

According to the company, the number of loyal customers increased by 3.5% to 1.56 million.

The pet retailer, acquired by Flybird Holding, recently decided to change its financial year to the calendar year 2025. 

From profit to loss

Despite the growth in sales, the company admits it was not satisfied with the overall results in the first month of 2024.

“The second quarter of the year came in slower than expected with the timing of Easter, its additional discounting and trading impact, compounding challenging consumer confidence,” says Rönnberg. He adds that, on the other hand, “operating efficiency, online growth, and cost control performed in line with expectations.”

The company posted losses of €5.2 million ($5.56M) in comparison to an operating profit of €7.1 million ($7.6M) in the first quarter of 2023. 

Half-year overview

From October 2023 to March 2024, Musti Group’s net sales accounted for €222.9 million ($239.1M), a 5.1% growth. 

The company posted €4.2 million ($4.5M) in profits in the past 6 months, 75% less than last year. Total profits hit €1 million ($1.07M) compared to €11.8 million ($12.6M) during the same period in 2022–2023.

Musti says that the main focus for the following quarter is to deliver “great value” for pet parents, expand the business and improve profitability. “As financial conditions eventually ease and growth picks up, Musti is in a great position to exploit the opportunity,” concludes Rönnberg.