Q4 2024 Swedencare AB (publ) Earnings Call Transcript
Key Points
- Swedencare AB (SWDCF) achieved record sales and EBITDA, with a gross margin of 58.5%, the highest since 2022.
- The company was accepted for trading under the ticker SWDCF at OTCQX in New York, enhancing its presence in North America.
- ProDen PlaqueOff received another VOHC recognition for its effectiveness against both plaque and tartar.
- The company proposed a dividend increase of 9% to SEK0.25 per share, aligning with its policy of distributing up to 40% of earnings.
- Swedencare AB (SWDCF) reported a significant increase in net income for 2024, reaching SEK98.9 million, a 69% rise compared to the previous year.
- Organic growth was only 4%, below expectations, with NaturVet experiencing a 21% decline in organic growth.
- External costs increased due to Amazon-related expenses and a SEK9.7 million non-operating legal settlement.
- The company faced challenges with private label sales, as three major accounts pushed orders into 2025.
- The veterinary market in the UK showed weakness, although there are signs of recovery.
- Swedencare AB (SWDCF) anticipates the need to build up inventory levels to meet the demands of big box retailers, which could impact cash flow.
Hi, and welcome to the presentation of Swedencare's Q4 reports, led by our CEO, Hakan Lagerberg, and CFO, Jenny Graflind. And we are pleased to have Brian Nugent, the CCO of Swedencare North America, joining us with the presentation during today's webinar.
(Operator Instructions) Over to you, Jenny and Hakan.
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Hi, everyone. Hakan Lagerberg here together with Jenny Graflind in Malmo, and then we have Brian Nugent earlier morning in Tampa, Florida, joining us for presenting the US Veterinary division. Okay. Let's see now.
Year-end report Q4 2024 highlights. Sales and EBITDA are at an all-time high. But growth is not where we want it to be. We had organic growth of 4%. So it's below our expectations. And it's somewhat the same story as last time with our biggest group company, NaturVet, having some headwind in the quarter with 21% organic growth decline and rest of the group altogether, 18% organic growth.
So we just need to get NaturVet fixed
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