Swedencare (SECARE) Pre-close call summary

Executive summary

• CEO announced retirement after 12 years, with a 12-month notice period for a smooth transition and succession planning.

• Europe and Rest of World show strong performance and momentum, while North America remains softer than expected, especially in dermatology, supplements, veterinary, and production segments.

• Online sales channels continue to outperform, with significant growth in supplement sales and solid momentum in UK, Germany, Italy, and Spain.

• Strategic focus shifting from M&A to collaborations, partnerships, and internal capability building.

• Focus on larger projects and partnerships in both new and established markets.

Trading performance and revenue trends

• North America underperformed, mainly due to NaturVet and medicated liquids, but online growth is recovering and expected to align with targets next quarter.

• ProDen PlaqueOff continues strong growth globally both online and in stores; new cat cream to launch in the U.S. in early 2027.

• Europe, especially Germany, shows strong double-digit growth, with online channels like Amazon and TikTok gaining traction.

• New big box private label customer launched in Q3 in North America, with high initial sales and potential for multimillion revenue.

• Rest of World adds new markets, especially in Asia, and posts the second-best export quarter in company history.

Profitability and margins

• Focus on ROI and profitability over high-cost growth, especially for NaturVet.

• Gross margin expected at 59%-60%, similar to Q2.

• EBITDA margin anticipated to exceed 20%, marking the best quarter of the year for profitability.