Musti Group aims to bounce back after tough earnings

In February, GlobalPETS reported on Musti Group’s financial results for the 2024 fiscal year, detailing the company’s dip in earnings despite a rise in sales. Even with an increase in net sales, the company faced a decline in earnings before interest, taxes, depreciation and amortization (EBITDA), signaling a challenge for the retailer.

In a statement accompanying the financial results, Musti’s CEO David Rönnberg acknowledges this and described the earnings dip as a “once-off occurrence.”

He attributes the decline to weaker consumer demand and market confidence but expresses confidence that Musti’s strategic actions would restore profitability in the future.

As the company looks toward recovery, it remains committed to its long-term strategy of expanding its footprint, increasing market share and offering exclusive products that deliver higher margins.

2025 strategy

While the earnings dip is a setback, Musti’s strategy for 2025 is centered on initiatives to encourage recovery and long-term growth.

Rönnberg has outlined a clear path forward, focusing on customer loyalty, product offerings and operational investments.

Much of the company’s strategy revolves around expanding its footprint, market share and wallet share, which it managed to make progress on in 2024.

Customer loyalty and market share

The average spent by “loyal customer” reached €209.10 ($228.90) in 2024, up slightly from €206.40 ($225.95) in 2023. This hints at some growth toward Musti’s goal of becoming a one-stop shop for pet owners in the Nordic and Baltic regions.

The retailer’s expansion into new markets, particularly in Norway and the Baltics, will see it aim to strengthen its market share and capitalize on the growing pet ownership trends across the region.

Alongside geographic expansion, the group has focused on driving higher spending per customer with personalized offerings and improved engagement through data analytics.

Exclusive products for higher margins

Exclusive products are another element of the plan. “Own and exclusive brands are a cornerstone of our high gross margins as these brands typically carry a 10–15%-point higher margin compared to global brands,” Musti’s Board of Directors’ Report and Financial Statements 2024 says.

However, because margins declined in 2024, the company may put renewed focus on building out its own set of products.

IT and infrastructure

In addition to product innovation, Musti is investing in its IT infrastructure and physical facilities.

Upgraded systems are expected to enhance inventory management, streamline online shopping experiences and support more efficient order fulfillment.

Facility upgrades are also planned to ensure Musti can handle the increased demand expected as the company grows.