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Swedencare (SECARE) investor relations material
Swedencare Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 sales grew 3% year-over-year, with 7% organic growth, but missed double-digit targets due to delayed orders and negative FX impact.
Acquisition of Summit Vet and in-house transfer of NaturVet Amazon account were key events, impacting revenue and margins.
Online sales, especially via Amazon, became the fastest-growing channel, strengthening digital presence.
Expansion into major US retailers (Walmart, CVS, PetSmart) and new geographies is expected to drive future growth.
New long-term financing secured at improved terms, reducing interest costs.
Financial highlights
Q2 revenue was SEK 647 million, up 3% year-over-year; organic growth was 7%, with a negative 9% currency impact.
Operational EBITDA was SEK 123 million, margin 19%, down 13% year-over-year; would have been 21% excluding Amazon transition.
Cash conversion dropped to 27% in Q2, impacted by inventory build-up for Walmart and acquisitions.
Dividend of 40M SEK (0.25 SEK/share) paid; lower cash levels due to acquisitions and inventory.
Net debt/EBITDA increased to 2.9, mainly due to acquisitions and lower EBITDA margin.
Outlook and guidance
Double-digit organic growth and improved margins are expected for H2 2025, supported by new contracts, product launches, and online expansion.
Q3 will see continued margin pressure from Amazon inventory sell-through, with normalization expected in Q4.
Full-year 2025 is expected to achieve double-digit organic growth and higher profitability than 2024.
Focus on growth in main markets, geographic expansion into Asia and South America, and operational efficiencies.
Net debt to EBITDA is expected to decrease to around 2.5 by year-end, barring major acquisitions.
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