Swedencare (SECARE) Pre-close call summary

Executive summary

• Strong presence at Interzoo led to new market launches and increased brand exposure, with several negotiations for expansion underway in H2.

• Capital market day and AGM held, with positive feedback and board changes including a new chairman and a Symrise representative.

• Authorization for share buybacks granted, to be used when deemed prudent.

Trading performance and revenue trends

• Double-digit organic growth expected for the quarter, with online channels in Europe and North America showing strong improvement.

• NaturVet by Swedencare expanded online in Europe and launched on Amazon and UK shop, with retail rollout planned for H2.

• Two business segments performing strongly, while Europe and North American production remain below desired pace.

• U.S. supplements solid, but dermal liquids remain soft due to distributor merger and seasonality.

Profitability and margins

• Gross margin expected to remain in the 58%-59% range, consistent with previous quarters.

• EBITDA margin anticipated to improve year-on-year and be similar to Q1's 19.6%.

• No significant inflationary pressures reported; cost structure stable.

• Profitability pressure from Amazon and big box channels expected to ease in H2.