Musti Group’s earnings report was expected to show growth figures and improving profitability, but the reported operating result was unexpectedly disappointing. The company announced that it would abandon its long-term financial goals and stop distributing dividends for the time being. Compared to last year, Musti Group was expected to see a clear increase in profit and turnover at the beginning of the year. While turnover did increase by 5.5 percent, the overall result was lower than anticipated.
In the second quarter of the fiscal year, Musti Group reported an adjusted ebita result of 6.6 million euros, down from 8.9 million euros in the same period a year ago. The company fell short of the analyst’s expectations, with a figure of 11.4 million euros. Musti also reported an operating profit of -5.2 million euros at the beginning of the year, significantly lower than the 7.1 million euros reported in the same period the previous year.
Furthermore, the adjusted EBITDA for Musti Group in January–March was 15.0 million euros, down from 16.6 million euros in the comparison period. Turnover increased to 107.2 million euros, up from 101.7 million euros a year ago, but still below analyst expectations. The adjusted ebita margin was 6.1 percent, compared to 8.7 percent in the previous period, falling short of the company’s long-term goal of exceeding 13 percent.
CEO of Musti Group, David Rönnberg, attributed the slower second quarter to the timing of Easter, discounts, and weak consumer confidence. He highlighted operational efficiency and growth in e-commerce as positive factors. Despite challenges, Rönnberg emphasized the growth of the store network and online sales as driving factors for revenue growth.
Moving forward, the company’s focus is on offering added value to pet parents and taking advantage of growth opportunities when economic conditions improve. Musti Group’s board announced a change in the dividend policy, with no expectation to pay dividends for the time being, as the company prioritizes using net profit to finance growth and investments.