Q2 2025 Swedencare AB (publ) Earnings Call Transcript
Key Points
- Swedencare AB (SWDCF) reported a 3% increase in sales for Q2 2025, with a 7% organic growth compared to the previous quarter.
- The acquisition of Summit Vet has been successfully integrated, contributing SEK26 million to the quarter's revenue.
- The company achieved its highest gross margin since 2022 at 58.9%, indicating improved operational efficiency.
- Swedencare AB (SWDCF) is expanding its product offerings with new SKUs at major retailers like Walmart and CVS, which is expected to boost future sales.
- The transition of the NaturVet Amazon account to in-house management has been operationally successful, with expectations of improved margins in the future.
- The company faced a negative 9% currency impact on revenue for the quarter, affecting overall growth.
- Operating EBITDA was lower than expected at 19%, impacted by the Amazon transition and delayed shipments.
- Net debt-to-EBITDA increased to 2.9, higher than the previous quarter, partly due to recent acquisitions.
- Cash conversion was low at 27% for the quarter, primarily due to inventory buildup and large supplier payments.
- The veterinary market in the US is experiencing softness, impacting Swedencare AB (SWDCF)'s growth in that segment.
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Welcome to the presentation of Swedencare's half-year report led by our CEO, Hakan Lagerberg; and CFO, Jenny Graflind. And we are pleased to have our European CCO, Laszlo Varga, joining us with the presentation during today's webinar. And as usual, we will have a Q&A after the presentation. (Operator Instructions)
Over to you, Jenny and Hakan.
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Thank you so much, Emma. A warm welcome to everyone joining this call.
Q2 2025 highlights. Sales increased 3% and primarily affected a lot with the negative FX, as you all know, due to the low sales growth. Organic growth, 7% increase compared to last quarter, but definitely a disappointment for us since we thought we would be reaching the double-digit goal that we have, and I will explain that a bit later. But main driver for not reaching it was a big box order that was scheduled to go out in mid-Q2, but due to
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