Musti Group builds on ZU acquisition to deliver double-digit growth

Musti Group’s net sales for the third quarter (Q3) of fiscal year (FY) 2026 grew 17.7% year over year (YoY) to €149.9 million ($168.2M), supported by growth across all markets. Like-for-like sales also increased 5.6%.

The Helsinki-based pet retailer said it continues to see gains from ZU, the Portuguese pet specialty retailer it acquired last year. During the quarter, the subsidiary increased net sales by €9.8 million ($11.0M). Excluding the acquisition, the Group’s net sales growth was 10.0%.

In the previous quarter, ZU contributed €17.2 million ($19.3M) to net sales. Its total contribution during the first nine months of FY2026 reached €27 million ($30.3M).

Gross margin improved to 44.6% (44.3%), mainly driven by the increased share of own-brand food production at the company’s own factory.

Musti’s network of stores and veterinary clinics grew to 542, up from 425 in the same period last year, while the total number of customers increased to 1.886 million, up 2.6% from 1.839 million. The customer figure excludes the Baltics and ZU.

The company reported a net profit of €0.1 million ($0.1M), compared with €0.2 million ($0.2M) a year earlier, a reported decline of 23.7%. Operating result was €3.6 million ($4.0M), up 43% YoY.

Market breakdown

Sweden was the biggest contributor to net sales during the quarter, generating €52.8 million ($59.3M), up 11.8% YoY. This was driven by strong like-for-like sales growth of 7.2% and an increased number of stores opened and acquired during the last 12 months. The segment opened three directly operated locations and acquired one during the quarter.

Finland followed with €51.4 million ($57.7M) in net sales and like-for-like sales growth of 3.1%, despite a slowdown in online sales following the e-commerce platform change. The market saw one opening and one store closure during the period.

In Norway, net sales grew 22.2% to €26.4 million ($29.6M), also driven by like-for-like sales growth of 7.5% across categories and the ramp-up of stores opened during the last 12 months, including two openings in Q3.

New markets

Meanwhile, the new markets segment—which includes the Baltics and Portuguese operations—recorded net sales of €19.2 million ($21.5M), more than double the previous year’s €8.7 million ($9.8M).

However, the company explains that financial performance in the Baltic markets was negatively affected by the weak consumer climate.

Pet City, which operates 49 retail stores and 16 veterinary clinics, contributed €9.3 million ($10.4M) to the segment’s net sales, while ZU—with 86 retail stores, 24 of which include veterinary clinics—contributed €9.8 million ($11.0M).

There were no changes to Pet City’s retail network during the period, while ZU opened five locations and acquired the PetOutlet chain, which has nine locations.

9-month overview

For the first nine months (9M) of FY2026, Musti’s net sales grew 15.8% to €427 million ($479.1M), supported by particularly strong growth in Norway. Like-for-like sales growth was 3.9% (3.4%), with growth across all segments.

Gross margin also rose to 44.3%, mainly driven by investments made in gross margin during the previous year, especially the increased share of own-brand food production at the company’s own factory.

However, the group widened its net loss for the period to €7.7 million ($8.6M), from €4.2 million ($4.7M) last year, resulting in a loss per share of €0.23 ($0.26). Operating result was €0.4 million ($0.4M), down from €2.9 million ($3.3M) in 9M FY2025.

Online vs. offline

In Q3, offline sales in stores and veterinary clinics increased by 20.4% to €116.3 million ($130.5M). On a like-for-like basis, offline sales growth was 4.9%. The retail network grew by 20 locations during the quarter.

Online sales also rose 10.3% to €31.4 million ($35.2M), accounting for 21% of total net sales. Like-for-like growth stood at 8.1%.

For the interim period, offline sales grew 18.6% to €328 million ($367.8M), as the retail network grew by 45 locations. Like-for-like offline sales growth was 3.8%. Meanwhile, online sales increased by 8.3% to €92.5 million ($103.8M), accounting for 21.7% of total net sales. Like-for-like online sales growth was 4.2%.

FY2026 expansions

According to Musti Group CEO David Rönnberg, 2026 has been “an intense year” of structural projects to prepare the company for further scale.

The company had opened 45 new locations during the year to date. The CEO also said its own factory now produces 70% of Musti-branded food, and the company is ramping up wet food capacity.

In addition, its central warehouse in Eskilstuna is operating at its best-ever efficiency following significant investments in packing automation, while its new point-of-sale (POS) system, one of its major platform projects, is nearing full implementation.

In Q3, Musti invested €6.7 million ($7.5M) in tangible and intangible assets, while total investments for the first nine months reached €21.5 million ($24.1M). These investments were mainly related to new and relocated stores, digital platform development projects and production machinery.

Guidance

The Nordic pet retailer reaffirmed its full-year outlook, expecting a gradual return to long-term market growth levels of approximately 4%.

This view is supported by stabilizing puppy and kitten populations, which are returning to long-term average levels, and improving consumer spending power across European markets as gross domestic product (GDP) forecasts strengthen towards 2027.