Musti Group posts sales of €391 million in FY 2022
The Nordic pet retailer slightly decreased its profit in the first quarter of its FY 2023 by 0.8% to €10.1 million ($11M).
The company revealed a net sales growth of 14.7% from October 2021 to November 2022 (FY 2022), while operating profit increased by 30.9%.
Helsinki-based Musti reached €110.4 million ($119.5M) in the first quarter of FY 2023, from October to December 2022, 8.9% more than the same period of last year.
Store sales in the quarter accounted for 77.3%, while e-commerce contributed 22.5%. An additional 0.5% came from franchise fees and wholesale business, according to the data released by the company.
Consumer behavior
Company CEO David Rönnberg said he was “pleased” to report healthy growth in the first quarter of its financial year. He added that by collaborating with “high-quality” breeders in each of the markets it is in, it was able to engage with new puppy parents.
According to the retailer, new puppy meal customers increased by 3% despite puppy registrations declining in some Nordic countries such as Sweden (-4.4%).
Rönnberg noted that roughly 70% of its products are necessary items such as food and cat litter. “Customers continued to display a willingness to sustain spending on non-discretionary pet care purchases, and the sales of food and other consumables grew double-digit.”
4 out of 10 sales occur in Finland
From October to December 2022, Finland recorded the highest sales (43.1%), followed by Sweden (40.6%) and Norway (16.3%).
Musti increased customer loyalty by 10.8% and opened 6 new stores in the quarter. Store sales were up 9.5% to €85.4 million ($92.4M).
The company said it invested €3 million ($3.25M) in opening and relocating stores, technology projects, and warehouse development. Additionally, €2.4 million ($2.60M) was invested in acquiring pet businesses in Sweden and Norway.
Musti’s strategy and financial targets “remain firm” in the long run as the retailer believes pet parents supporting its business model will increase. Plans include achieving minimum net sales of €500 million ($541M) by 2024 and increasing profitability by at least 13%.