Musti Group reports mild growth, citing softening in Nordic market
The Finnish pet retailer released its quarterly financial results, showing modest growth from new retail locations.
Musti Group announced net sales of €111.5 million ($119.5M) from July to September 2024, an increase of 1% against the same period last year.
The Helsinki-based company reported net cash flow from operating activities of €19.9 million ($21.3M), down from last year when that figure was €29 million ($31.1M).
However, like-for-like sales growth declined by 0.9%, despite 10% like-for-like growth during the same period last year.
Slowing sales growth
That means existing stores have lost some of their sales growth, though the company continues to increase net sales through its expansion efforts. Musti Group opened 1 directly operated store during the quarter, though 9 have opened in the past year.
While like-for-like sales declined, e-commerce numbers improved, with online sales increasing 9.6%. As of September 2024, the company’s total number of customers was 1,861,000, a 3% increase from the previous year.
“Musti continues to grow customers and market share in a tough Nordic consumer environment, highlighting that our integrated stores, online and services format remain relevant and resilient,” says CEO David Rönnberg.
Market expansion
Rönnberg added that the company is confident that their investments in current and new markets “will continue” to extend their share gains.
“The economic outlook for the Nordic consumer is still uncertain, which impacts Musti,” he notes to investors. “We believe that the long-term market trend of pet parenting continues despite the temporarily soft demand during the past year.”
Musti, which currently operates in Norway, Sweden, and Finland, is expanding its footprint into Estonia, Latvia and Lithuania after the recent acquisition of Pet City.
“With the acquisition of Pet City, Musti will strengthen its footprint as the market leader in Northern Europe, working to deliver great service, advice and value to pets and pet parents in 6 countries,” explains Rönnberg.
The transaction will provide the Nordic group with 46 retail stores, 16 veterinary clinics and 472 employees in the region. Musti Group was acquired by Sonae earlier this year.
