Musti Group reports 15.6% sales growth despite wider losses

Musti Group posted a 15.6% year-over-year (YoY) increase in net sales in the first quarter of fiscal year (FY) 2026, ended 31 March, to €138.5 million ($157.9M).

Growth was driven by strong sales performance in Norway, where net sales rose 25.5% YoY. The number of customers also increased by 2.8%, compared to a 0.4% decline in Q1 2025.

The acquisition of the Portuguese retailer and services provider ZU in December 2025 contributed positively to performance. ZU contributed €8.4 million ($9.6M) in net sales during the quarter. Excluding the acquisition, comparable net sales growth was 8.7%.

Decreased profitability

However, the Nordic pet care company reported a wider net loss of €3.8 million ($4.3M) compared with a loss of €3.5 million ($4M) in the same period last year.

Operating result fell to a loss of €1.4 million ($1.6M) from a profit of €0.1 million ($0.1M) in Q1 2025.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 11.8% YoY to €14.2 million ($16.2M), while adjusted EBITDA margin declined slightly to 10.3% from 10.6% in 2025.

Offline vs. online

Offline store and veterinary clinic sales rose 18.2% to €105 million ($119.7M), supported by 16 new locations opened during the quarter. On a like-for-like basis, offline sales growth reached 4.2%.

Online sales increased 9.4% YoY to €31.4 million ($35.8M), accounting for 22.7% of total net sales. Like-for-like online sales growth improved 3.1% YoY.

Performance by market

Finland, the group’s largest market, accounted for 35.3% of total net sales, generating €48.9 million ($55.7M), a 3% YoY rise. During the quarter, 1 directly operated location was opened.

In Sweden, which represented 35.1% of total net sales, revenue grew 8.7% to €48.7 million ($55.5M). Growth was supported by the increase in the number of stores opened and acquired over the last 12 months.

The Swedish market currently operates 147 locations through the Arken Zoo and VetZoo brands. During Q1, 3 new locations were opened, and 1 location was acquired, while 5 operated veterinary clinics were incorporated into the current year’s location count.

Norway recorded the strongest growth among the group’s markets, with net sales reaching €24 million ($27.4M). Performance was driven by like-for-like sales growth of 12.6% across categories, as well as the ramp-up of stores opened during the last 12 months.

During the first quarter of 2026, Musti acquired Petco Retail, which operates 3 locations in Norway. In addition, 2 directly operated locations were opened.

Expansion

Net sales in new markets increased 8.5% YoY to €17 million ($19.4M). Pet City contributed €8.7 million ($9.9M) to the segment’s net sales, while ZU contributed €8.4 million ($9.6M).

During the quarter, Pet City closed 2 directly operated locations, and ZU opened 3. The New Markets segment comprises 49 retail stores and 16 veterinary clinics under the Pet City banner across the Baltics, as well as 68 retail stores under the ZU chain in Portugal, 24 of which include veterinary clinics.

FY2026 Guidance

For FY2026, Musti Group expects a “gradual return to long-term market growth levels of approximately 4%,” supported by the normalization of factors that have suppressed market growth in recent years.

The company also expects to benefit from stabilizing puppy and kitten ownership levels, which are returning to long-term averages, and from improving consumer spending power across European markets toward 2027.

According to the company, the outlook is supported by improving gross domestic product (GDP) forecasts, wage increases and stable interest rates.