Swedencare (SECARE) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales grew 3% year-over-year to 646.7 MSEK, with 7% organic growth, but missed double-digit targets due to a delayed Walmart order now scheduled for Q3.

• Acquisition of Summit Vet in the UK and the in-house transition of the NaturVet Amazon account were key operational events, impacting revenue and margins.

• Major launches with Walmart, CVS, and PetSmart are set for late July and Q3, with additional SKUs expanding at PetSmart.

• Online sales, especially via Amazon, are the fastest-growing channel, with strong double-digit growth.

• New long-term financing was secured at improved terms, reducing interest costs.

Financial highlights

• Q2 revenue reached SEK 647 million, up 3% year-over-year; organic growth was 7%, acquired growth 5%, and currency impact -9%.

• Operational EBITDA was SEK 123 million, with a 19% margin, down from 23% in Q2 2024.

• Net debt/EBITDA increased to 2.9, up from 2.4 a year ago and 2.0 last quarter, mainly due to acquisitions and lower EBITDA margin.

• Cash conversion was low at 27% due to inventory buildup for Walmart and large supplier payments.

• Dividend of SEK 0.25 per share paid, totaling SEK 40 million.

Outlook and guidance

• Double-digit organic growth and improved margins are expected for H2 2025, driven by new launches, expanded contracts, and strong online momentum.

• Gross margin will be impacted by accounting adjustments in Q3 but is expected to normalize in Q4.

• Net debt/EBITDA is expected to decrease to around 2.5 by year-end, barring major acquisitions.

• Focus on growth in main markets and geographic expansion into Asia and South America.