Musti increases sales thanks to Pet City integration

Musti Group reported net sales of €119.8 million ($135.8M) in the first quarter of 2025, an increase of 11.8% year-over-year (YoY). The retailer more than doubled its YoY growth from last year’s Q1.

This was driven by the recent acquisition of Pet City, which accounted for €8.5 million ($9.6M) in sales, and a “rebound” in the markets where the company operates.

Like-for-like sales growth was up 2.4%. Gross margin was 42.5% from January to March.

Musti opened 46 retail stores and 16 veterinary clinics in key markets across the Baltics during the quarter. The group’s total store count is 414 locations, 352 of which are in Finland, Sweden and Norway.

Rebounding market

“Musti continues to gain market share in a rebounding market. We are pleased that the key strategies of our ambitious growth plan are working, as seen by the smooth integration of Pet City and increased customer engagement in all markets,” says CEO David Rönnberg.

Stronger sales also reflect a rebounding customer sentiment and store sales increased by 13% to €88.9 million ($100.7 million).

Online sales remained strong at €28.7 million ($32.5M), accounting for 24.0% of total sales. Meanwhile, the rolling 12-month average spend per loyal customer increased to €215.80 ($245), and the number of customers also grew by 1.0% to exceed 1.8 million.

Less operation loss

The company’s operating loss was much smaller than in the previous year (-€0.1M/-$0.1M), a notable improvement of €5.1 million ($5.8M), while the overall loss after all expenses, taxes, etc., shrunk by €1.3 million to -€3.5 million ($3.9M).

“Financial performance was in line with expectations. Group adjusted EBITDA decreased to €12.7 million ($14.4M) primarily due to targeted investment in price and campaign activities and the integration of Pet City,” explains Rönnberg.

“Adjusted EBITDA margin was 10.6% and is expected to rise as consumer confidence improves and as the integration of Pet City progresses.”

Looking ahead

Musti Group notes the continued strength of the pet parenting trend in driving long-term market growth. The firm expects growth in line with its long-term average of 4%.

“Our plan is to deepen customer engagement in the Nordic market and use those lessons to take our experience to new markets,” states Rönnberg.

“We are experiencing success in our concept implementation in the Baltic markets, and I’m confident that the lessons from that will improve our approach as we review additional opportunities for expansion that will add further momentum to our growth.”