Musti returns to double-digit growth in FY2025 driven by acquisitions

Musti Group posted a 14.6% year-over-year (YoY) increase in net sales for the last quarter of fiscal year (FY) 2025, ending 31 December 2025, totaling €140 million ($166M). Like-for-like sales growth was more modest at 2.8%. 

Results were driven by solid growth in Norway (17.6%), a €6.2 million ($7.4M) contribution from Pet City in the Baltics – acquired in November 2024 – and a €3.1 million ($3.7M) contribution from Portuguese retailer ZU Produtos e Serviços Para Animais, bought in December 2025. 

Finland and Sweden posted smaller increases of 3.2% and 7.1%, respectively. 

Although the company did not disclose specific insights for the Baltic market, CEO David Rönnberg says it “benefited from integration initiatives,” including optimizing the assortment and rolling out Musti’s broad portfolio of exclusive products. Rönnberg added that gains were tempered by a weak consumer climate.

Compromised profitability

According to the company, gross margin improved to 45.1% from 44% during the same period in 2024 due to investments such as increased share of production of own brand food in their own factory. The share of private-label and exclusive brands increased from 51.8% in the previous year to 52.4% in Q4. 

Profitability, on the other hand, was impacted by the investments in expansion. As a result, Musti ended the quarter with a profit of €0.5 million ($0.6M), an 82.7% decrease YoY. 

Full year results

The group also reported double-digit growth in net sales during FY2025, with revenue totaling €508.9 million ($606M), up 14.4% YoY. The last quarter delivered the strongest results, with net sales growing 11.8% in Q1, 14.3% in Q2 and 14.2% in Q3. Like-for-like sales rose 3.3% YoY. 

Despite a recovery in profitability in the last quarter, the company was unable to turn a profit and closed the year with a €3.7 million ($4.4M) deficit.

Despite mixed results, the CEO highlighted several accomplishments. “Successful integration of new markets, the launch of new brands, increased food production capacity, [and] successful investment to strengthen Musti’s IT and logistics backbone all enhance value creation opportunities as we continue to determinedly develop Musti’s market leadership,” Rönnberg says. 

Contribution by market

Norway recorded the strongest annual growth in FY2025 at 16.6%. The country is the third-largest market by net sales, accounting for 16.7% of total revenue. Sweden posted a 5.4% YoY increase and accounted for 36.9% of the group’s net sales during the last year. 

Finland is Musti’s largest revenue contributor, at 38.9%, but it posted the smallest YoY increase, at 3.7%. According to the company, this is due to Finland being its most mature market, where Musti is a leader in the segment. New markets – the Baltics and Portugal – accounted for 7.5% of total net sales. 

Stores and channels

During FY2025, store sales increased by 17.5% to €383.9 million ($457M). The group opened 19 directly operated stores and acquired 2 third-party locations, while closing 3 directly operated and 2 franchise stores. Now, it operates 481 sales points, 54 vet clinics and 173 spas.

Online sales increased by 6.4% to €116.4 million ($138M), accounting for 22.9% of total net sales. 

Total customers across the Nordic businesses (excluding new markets) increased by 0.3% to roughly 1.9 million, with an average annual spend per loyal customer of €220.40 ($262).

Guidance

For 2026, the company expects a “gradual return to long-term market growth levels of approximately 4%,” supported by stabilization of the pet population and macroeconomic forecasts indicating improved consumer spending power across European countries.