Presentation

Swedencare develops, produces and sells premium products within animal healthcare for cats, dogs and horses. The product groups ProDen PlaqueOff® and NutriScience® are sold in approximately 50 markets worldwide, both through direct sales and distributors. Swedencare’s customers are primarily veterinarians, pet stores and pharmacies. The company is headquartered in Malmö, Sweden.

Recent highlights
Net sales were SEK 470.9m (160.2), corresponding to a 194% increase y/y and an FX-adjusted organic growth of 4%. The operational EBITDA amounted to SEK 118.6m, which resulted in an EBITDA margin of 25.2%. North America continues to constitute the majority of sells and delivered 78% (62) of total sales in Q2. Also, Nutraceuticals grew 265% y/y driven by the acquisition of FAV, NaturVet, and Innovet. The Nutraceuticals segment represents 50% (41) of all sales followed by Topicals/Dermatology with 30% (28) and Proden Plaqueoff® having 10% (24).
After evaluation by the European Patent Office (EPO) and the United States Patent and Trademark Office (USPTO) have Swedencare received an “intent to grant” for the new starch-free Soft Chews. Moreover, have Swedencare finalized the earn-out payment of USD 27.5m related to the acquisition of the American company, NaturVet.

Outlook
We forecast Swedencare to have net sales of SEK 1.9bn and gross margin 57% for full-year 2022. We then expect sales to reach the financial target of SEK 4bn by 2026. However, we believe we forecast the operational EBITDA margin to be 26% and the reported EBITDA margin to be 24.7% for full-year 2022, which is below the company’s objective of 30%.