Europe driving growth for the quarter
Summary of the period
Numbers in parentheses refer to outcome of the corresponding period of the previous year.
All amounts in the report are presented in Swedish kronor (SEK) and rounded to the nearest million, unless otherwise stated.
Fourth quarter: October 1st - December 31st, 2024
- Net revenue amounted to 661.3 MSEK (627.2 MSEK), corresponding to an increase of 5% (26%)
- Organic, currency-adjusted growth amounted to 4% (23%)
- Operational EBITDA amounted to 145.3 MSEK (133.7 MSEK), corresponding to an increase of 9%, and an EBITDA-margin of 22.0% (21.3%). The operational adjustments totaling 6.3 MSEK include a legal settlement, and a non-cash flow-impacted evaluation of acquisition stock to fair value
- Operational EBITA amounted to 123.7 MSEK (113.6 MSEK), corresponding to an increase of 9% and an EBITA-margin of 18.7% (18.1%)
- Operational EBIT amounted to 123.3 MSEK (113.3 MSEK), corresponding to an increase of 9% and an EBIT-margin of 18.6% (18.1%)
- Profit after tax amounted to 23.8 MSEK (-13.0 MSEK)
- Earnings per share calculated on 158,862,839 shares (158,731,900 shares) amounted to 0.15 SEK (-0.08 SEK)
- Cash flow from operating activities amounted to 81.7 MSEK (126.3 MSEK)
- 75.0 MSEK has been amortized on the debts to credit institution
- As of December 31st, 2024, cash amounted to 186.8 MSEK (237.3 MSEK)
Full year: January 1st - December 31st, 2024
- Net revenue amounted to 2,530.2 MSEK (2,324.6 MSEK), corresponding to an increase of 9% (27%)
- Organic, currency-adjusted growth amounted to 9% (15%)
- Operational EBITDA amounted to 560.7 MSEK (494.0 MSEK), corresponding to an increase of 14%, and an EBITDA-margin of 22.2% (21.3%). The operational adjustments totaling 19.8 MSEK include M&A costs, adjustments of provisions due to additional claims from previous years, and a non-cash flow-impacted evaluation of acquisition stock to fair value
- Operational EBITA amounted to 478.0 MSEK (416.1 MSEK), corresponding to an increase of 15% and an EBITA-margin of 18.9% (17.9%)
- Operational EBIT amounted to 476.4 MSEK (414.8 MSEK), corresponding to an increase of 15% and an EBIT-margin of 18.8% (17.8%)
- Profit after tax amounted to 98.9 MSEK (58.6 MSEK)
- Earnings per share calculated on 158,786,637 shares (158,731,900 shares) amounted to 0.62 SEK (0.37 SEK)
- Cash flow from operating activities amounted to 359.1 MSEK (444.0 MSEK)
- 200.0 MSEK has been amortized on the debts to credit institution
- The board proposes a dividend of 0.25 SEK (0.23 SEK) per share
Significant event during the fourth quarter
Swedencare and zooplus announce an exclusive partnership to launch NaturVet-products on the European market.
Swedencare's ProDen PlaqueOff® Soft Chews for dogs receive the VOHC seal.
Swedencare has qualified to trade on the OTCQX® Best Market.
Significant events after the fourth quarter
There are no significant events after the end of the fourth quarter to comment on.
Words from the CEO
The fourth quarter's net sales of 661 MSEK represented an increase of 5% compared to Q4 2023 and marked the highest sales to date. Our operational EBITDA margin was 22%, amounting to 145 MSEK, also a record high. As expected, our net debt ratio to EBITDA continues to decrease and is now 2.05, down from 2.63 in December 2023. Our cash flow remains strong, and we have used our cash for both necessary business investments and repayment of loan of 75 MSEK during the quarter. Our organic growth was 4% for the quarter and 9% for the year. Just as in the previous quarter, the performance is divided between the entities, with our largest unit, NaturVet, experiencing negative growth of -21% in the quarter. On the other hand, the rest of the group delivered organic growth of 18%. The base for continued solid growth has been built in 2024 through a major transformation program involving improved organization, processes, strategy, and sales, which is expected to be reflected in the 2025 figures. I am cautiously optimistic that we will deliver double-digit organic growth in the coming years, which is also likely to improve profitability.
Market Conditions
No one has missed following the U.S. presidential election and what has happened since. For several years, we have focused on having production units in various local markets (EU, NA, and UK) mainly to enable smooth and quick product access and with a focus on sustainability by minimizing transportation. We also aim to purchase local raw materials, ingredients, and packaging where possible. Thus, we are well-prepared for different scenarios in global trade and expect limited impact. Our Pharma division shows strong growth, especially in manufacturing. As previously communicated, we expect continued strong growth in the coming years as both contracted projects move from development to manufacturing and we expand our range by offering liquid solutions in addition to tablets and soft chews. Geographically, Europe continues to lead our growth, with the UK, the Nordics, and Italy standing out. I also want to mention Greece, which is a small market gaining market share year after year and serves as a good example of the results of becoming part of Swedencare. The year before we acquired Biovet, in 2018, Swedencare products accounted for 14% of their sales. Now, 6 years later, that figure is 55%, while the sales of Swedencare products in 2024 equal the company's total revenue in 2018. The UK remains weak in terms of growth in the veterinary sector. Still, we have indications that this trend is reversing and that performance will be stronger this year due to improved market conditions and several essential and requested product launches. On the other hand, online in the UK has been particularly successful with the shift to self-managed Amazon sales, and good growth is also expected in 2025. We have also begun managing the rest of Amazon in the EU independently this year. In the USA, we have implemented a cohesive strategy for our sales in the veterinary sector. Brian Nugent outlines this strategy below and also participates in our quarterly presentation. ProDen PlaqueOff® remains our fastest-growing brand globally and in terms of value. By utilizing different parts of the organization, we have successfully sold our products across all channels, resulting in growth well above the industry average. Our dental sales grew by 54% during the quarter.
Company NaturVet
The most negative impact on the quarter was primarily due to private label. At the turn of 2023/2024, order volume and price adjustments were made for the operation, leading to larger placed orders in the last quarter of 2023. We have not made similar adjustments this year, resulting in our two largest customers delaying orders until 2025. In the reorganization that took place over the year, the process has changed, which is expected to provide better visibility regarding planning, production, and improving forecasts for upcoming quarters. Brand sales have stabilized, and I expect growth to return in 2025. The changes made during 2024 have been necessary to take NaturVet to the next level, and we expect to begin reaping the benefits of this work already this year, as several new collaborations have been initiated or confirmed. Regarding Big Box retailers, we will be featured in the online assortment of three of the largest chains before the quarter ends. Being online is a prerequisite for subsequent launches in their physical stores.
Mergers and Acquisitions
The market has reawakened in 2024, leading to an increase in deals. In addition to the smaller add-on acquisitions made in 2024, we are now ready to consider more significant opportunities. I have resumed discussions with companies we've kept in touch with while also exploring new possibilities. Hopefully, we will succeed in finalizing at least one of these deals this year, adding something new to our global group with attractive growth and profitability figures. Finally, I would like to thank the entire organization for their efforts and dedication throughout 2024, and I anticipate this will lead to an even better 2025!
Håkan Lagerberg
Malmö February 13th, 2025
The complete year end report is attached to this press release and is available at www.swedencare.com
Swedencare invites shareholders and analysts to a presentation of the year end report where CEO Håkan Lagerberg and CFO Jenny Graflind will comment on the report. Brian Nugent, CCO of North America, will also participate in the presentation. The presentation will be held at 10:30-11:15am CEST and can be followed via live webinar.
Please use this link to join the webinar: https://us06web.zoom.us/j/88676838283
For more information, please contact:
Håkan Lagerberg, CEO Swedencare
Phone: +46 (0)73 517 01 70
Email: hakan.lagerberg@swedencare.se
Jenny Graflind, CFO Swedencare
Phone: +46 (0)73 944 85 54
Email: jenny.graflind@swedencare.se
FNCA is the Certified Adviser of the Company
Please visit the Company homepage www.swedencare.com
About Swedencare
Swedencare is listed on the NASDAQ First North Growth Market and also trades on the OTCQX® Best Market. We develop, produce, and sell premium products in the global and rapidly growing pet healthcare market, focusing on cats, dogs, and horses. Our extensive product portfolio includes strong brands such as NaturVet®, Innovet, Pet MD®, Rx Vitamins®, nutravet®, Rileys®, and ProDen PlaqueOff®, the original solution for good oral health.
With headquarters in Malmö, our products are sold in approximately 70 countries through veterinarians, pet stores, and online. Our extensive distribution network consists of subsidiaries in nine countries, along with an international network of retailers. Swedencare has experienced strong growth for several years while maintaining high profitability.
This information is information that Swedencare is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-13 07:30 CET.
