Swedencare (SECARE) Q2 2026 earnings summary

Executive summary

• Net revenue grew 7% year-over-year in Q2 2026, with Europe up 19%, North America down 3%, and production up 25%; export markets, especially China, had their strongest quarter.

• Achieved resilient growth and strong cash generation despite market volatility, with standout performance in Europe and Production segments, while North America lagged due to delayed launches and channel effects.

• Dental segment, led by ProDen PlaqueOff®, achieved over 30% growth; Pharma segment delivered strong growth in both development and manufacturing.

• New board elected, including two new members and a new chairman, with a focus on continuity and refreshed governance.

• Profit after tax improved to 23.7 MSEK from -6.9 MSEK in Q2 2025.

Financial highlights

• Q2 2026 revenue reached 670 MSEK, up 4% year-over-year, with 7% organic growth and a negative 3% currency impact.

• Operational EBITDA was 129.4 MSEK, up 5% year-over-year, with a margin of 19.3%-19.6%.

• Gross margin was 61%, the highest since 2020.

• Cash conversion improved significantly, reaching 60% for the quarter and up 138% year-over-year.

• Dividend payout of 44 MSEK and net debt reduced by 5 MSEK year-to-date.

Outlook and guidance

• Management expects a stronger H2 2026, driven by improved online sales, increased North American volumes, and continued double-digit organic growth in Europe and Production, though not at Q2's exceptional levels.

• Gross margin guidance for the full year is 58%-59%, with Q2's 61% seen as exceptionally high.

• Profitability expected to improve in H2 as front-loaded investments in H1 subside and operational efficiencies are enhanced.

• Focus on geographic expansion into Asia and South America, strengthening online platforms, and pursuing acquisitions in premium pet health.