Swedencare (SECARE) Q1 2026 earnings summary

Executive summary

• Achieved double-digit organic growth and improved gross margin compared to Q4 and the previous year, with increased profitability as expected.

• Strong momentum in Europe and production segments, with 20%+ organic growth and robust demand for dental, pharma, and online sales.

• Margins and sales impacted by NaturVet Amazon transition, but improving monthly; normalization expected in H2 2026.

• No visible effects from international turmoil; local manufacturing in Europe and the U.S. limits exposure to global disruptions.

• Maintained double-digit organic growth for the third consecutive quarter, with improvements in operational structure and innovation.

Financial highlights

• Q1 2026 revenue reached 650.3 MSEK, up 1% overall, with 11% organic growth, -14% currency impact, and 4% acquired growth.

• Operational gross margin was 59.7%, the highest since 2020, driven by product mix and strong European growth.

• Operational EBITDA was 127.7 MSEK, up 3% year-over-year, with a margin of 19.6%–22.0%.

• Net debt to EBITDA decreased to 2.8, and cash conversion was 51%–56%, impacted by higher inventory and tax payments.

• SEK 50 million repaid on long-term loans; CapEx below 2% of net sales.

Outlook and guidance

• Expect normalization of margins and sales in H2 2026 as Amazon project stabilizes.

• All segments anticipated to achieve double-digit growth for 2026.

• Focus on operational efficiencies, online channel expansion, geographic growth in Asia and South America, and selective M&A.

• Gross margin expected to remain in the 58%-59% range for the year.

• Management expects continued double-digit organic growth, with normalization of cost levels in H2 2026.