Swedencare (SECARE) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw record sales and EBITDA, with organic growth at 4–5%, below targets due to a 21% decline at NaturVet, while the rest of the group grew strongly.

• The company was accepted for trading on OTCQX in New York, improving North American trading access.

• ProDen PlaqueOff soft chews received VOHC recognition for efficacy against plaque and tartar, supporting dental segment growth.

• Dividend proposed at SEK 0.25 per share, a 9% increase, in line with policy to distribute up to 40% of earnings.

• Net revenue for 2024 reached 2,530.2 MSEK, up 9% year-over-year, with Europe leading growth and North America impacted by NaturVet.

Financial highlights

• Q4 net revenue was 661.3 MSEK, up 5% year-over-year; full-year net revenue was 2,530.2 MSEK, up 9%.

• Q4 EBITDA reached 145.3 MSEK (22% margin); full-year operational EBITDA was 560.7 MSEK (22.2% margin), up 14%.

• Net income for 2024 was 98.9 MSEK, a 69% increase; EPS rose to 0.62 SEK.

• Net debt/EBITDA improved to 2.05 from 2.63; 200 MSEK in debt repaid during the year.

• Operating cash flow for 2024 was 359.1 MSEK; year-end cash position was 186.8 MSEK.

Outlook and guidance

• Focus remains on returning to double-digit organic growth and improving profitability in 2025, with NaturVet expected to recover through new branding and expanded retail presence.

• Pharma division anticipated to have record quarters in 2025, with capacity for further growth.

• Financial targets for 2026 remain unchanged, aiming for 4 billion SEK in revenue and EBITDA margin above 30%.

• Priorities for 2025 include growth, profitability, debt reduction, M&A reactivation, and new product launches.

• Europe, especially UK, Nordics, and Italy, expected to continue strong growth.