Swedencare (SECARE) investor relations material

Market and Operational Update

• No significant impact from Middle East turmoil or global transport disruptions; business as usual in key markets.

• Demand remains stable and strong across Europe, the U.S., and globally, with ongoing monitoring of potential cost impacts.

• Q4 profitability was affected by one-offs, including higher Amazon marketing costs, ERP implementation interruptions, and inventory write-offs, but these effects are expected to diminish going forward.

• ERP implementation is now complete, improving production efficiency at the NaturVet site, with no further impact expected on gross margin or volumes.

• Participation in major industry events like Global Pet Expo and Veterinary Meeting & Expo supports market presence.

Segment Performance and Sales Trends

• North America and Europe show strong online sales and new product launches, with improving ROI on Amazon and robust demand in pet retail and veterinary channels.

• Pet retail presence expanded to over 500 stores, with continued growth and new distribution partnerships.

• Walmart sales increased week by week through February, driven by a Q4 display campaign.

• European online and pet retail segments report strong demand, especially on Amazon, zooplus, and with strong starts in Italy and the UK.

• Pharma, contract manufacturing, and private label segments started the year strong in the EU and UK, with US expected to improve in Q2.

Financial Outlook and Profitability

• Double-digit annual organic growth achieved and targeted, with Q1 expected to meet this goal.

• Gross margin improved to 58.1% in 2025 from Q4’s 56.8%, driven by better production and price increases.

• EBITDA margin rose to 19.0% in 2025 from 15.9% in Q4, with improved profitability and no material one-offs expected in the current period.

• Net debt/EBITDA ratio decreased to 2.9 compared to Q4, with ongoing debt amortization.

• No significant one-off costs anticipated, and positive effects from scalability and price increases are expected.