Musti’s stable Q1 witnesses a 4.8% sales growth

Musti closed Q1 of FY 2024 (1 October 2023 to 31 December 2023) with net sales totaling €115.7 million ($125.2M), a growth of 4.8% from €110.4 million ($119.5M) in the same period last year. When currency exchange rates are excluded, growth is up 8.7%.

Food (54%) and consumables (21%) represent 3-quarters of product sales in Q1, showing consumers’ recurring purchasing habits. The remainder of the company’s sales were through the discretionary accessory spending category. Online sales accounted for 23.3% of total net sales worth €26.9 million ($29.1M).

Despite the increment in sales, operating profits in Q1 declined by 7.1% to €9.4 million ($10.1M) from €10.1 million ($10.9M) in 2022, representing 8.1% of net sales. 

Profits were also down by 17.1% from €7 million ($7.5M) in 2022 to €5.8 million ($6.2M) in the most recent quarter ending 31 December 2023.

Sales by region

Top sales markets this quarter were Finland (44.3%), Sweden (39.7%) and Norway (16%).

Net sales in the retailer’s home country increased by 7.8%, generating €51.2 million ($55.4M) due to “steady growth” in its online channel, the acquisition of the Suomi Oy premium pet food factory, and price increases. A directly operated store was also opened in this quarter.

The Swedish and Norwegian markets both improved their net sales by 2.5% to €46 million ($49.7M) and €18.5 million ($20M), respectively. Sweden’s operations added 2 directly operated stores and 3 via acquisitions. 1 franchise store left the chain. In Norway, 2 directly operated stores were opened.

Key events of the quarter: product recall and tender offering

Key events that affected Musti’s operations and expenses included a recall of 4 Smaak products and an investigation that cost €0.8 million ($0.86M). 

The public tender offer from Flybird Holding, a subsidiary of Sonae, has most recently increased its offer price for each share by €0.1/$0.11 after Sonae confirmed receiving all regulatory approval from the European Commission for the completion of the tender.

Targeting €500 million for 2024

Musti aims to cross €500 million ($541.2M) by the end of FY 2024 through the “continuation of strong customer acquisition momentum and increasing share of wallet.”

After a “stable” quarter, the pet food retailer will strive to improve cost efficiency and win back customer trust after its product recall incident. In Q1, the company’s loyal customers increased by 4.5% to 1,552 thousand.

Musti will also aim to open 20–25 stores per year, primarily in Norway and Sweden.

“As we move into Q2, our focus remains to deliver great value to our Pet Parents,” comments David Rönnberg, Musti Group CEO, as he concludes that the company’s ability to combine a growing portfolio of products, services and advice into “convenient propositions for Pet Parents is unique and will be the key enabler of future success.”