Overview
Finland pet care retailer's Q1 revenue rose 15.6% yr/yr, driven by Norway and Zu acquisition
Gross margin improved to 44.0% on higher share of own-brand food production
Adjusted EBITDA rose to EUR 14.2 mln, but margin dipped due to growth investments
Outlook
Musti expects continued growth and profitability from backbone investments and geographic expansion
Company expects benefits from Zu acquisition to contribute towards year-end
Musti says Baltic market affected by unsettled consumer confidence
Result Drivers
NORWAY AND ACQUISITION - Strong sales growth in Norway and the Zu acquisition boosted group net sales
OWN-BRAND FOOD PRODUCTION - Gross margin improvement mainly driven by increased share of own-brand food produced in-house
GROWTH INVESTMENTS - Higher operating expenses from investments in online and ERP platforms, logistics, and store planning affected profitability
Company press release: ID:nWkr7DTKnt
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 138.50 mln
Q1 Adjusted EBITDA
EUR 14.20 mln
Q1 Gross Margin
44.00%
Q1 Adjusted EBITA
EUR 2.60 mln
Q1 Adjusted EBITA Margin
1.90%
Q1 Adjusted EBITDA Margin
10.30%
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)