Swedencare (SECARE) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered 11% organic growth, with double-digit increases in key brands like NaturVet (33%) and ProDen PlaqueOff (17%), but profitability declined due to one-off costs, higher marketing spend, and operational disruptions.

• Organizational changes and cost controls have been implemented to address Q4 issues and improve profitability in 2026.

• Online, pet retail, and branded vet sales grew strongly, while contract manufacturing, especially in liquid dermatology, was soft.

• New long-term financial targets and a five-year plan were introduced, aiming for double-digit organic growth and an EBITDA margin above 26% by 2028.

• The board proposes a dividend of 0.28 SEK per share, up from 0.25 SEK.

Financial highlights

• Q4 2025 revenue was SEK 682 million, up 3% (11% organic), with a negative 12% currency impact and 4% acquired growth.

• Full-year 2025 net revenue reached SEK 2.7 billion, up from SEK 2.5 billion, with 9% organic growth.

• Operational gross margin for Q4 was 56.8%, impacted by inventory write-offs and low-margin display campaigns.

• Operational EBITDA for Q4 was SEK 109 million (15.9% margin), down 25% year-over-year; full-year EBITDA was SEK 511 million (19% margin).

• Net debt to EBITDA at year-end was 2.9, up due to lower EBITDA and recent acquisitions.

Outlook and guidance

• Gross margins are expected to recover in 2026 as one-off costs and display campaign impacts subside.

• Focus for 2026 is on increasing profitability, with actions underway in underperforming group companies.

• New financial targets: annual double-digit organic growth, operational EBITDA margin above 26% midterm, and net debt/EBITDA below 2.0 long-term.

• Continued investments in manufacturing and expansion into Big Box retail and online channels are expected to drive future growth.

• Market trends support long-term demand, with pet health spending projected to surpass $500 billion by 2030.