Swedencare (SECARE) SEB Nordic Seminar presentation summary

Business performance and growth

• Achieved record net revenue and profitability in Q3 2025, with 11% year-over-year net revenue growth and stable gross margin.

• Operational EBITDA increased by 14% in Q3 2025, with a margin of 21.7%.

• Cash conversion reached 99% of operational EBITDA, driven by inventory reductions and disciplined cost management.

• Net debt/EBITDA improved to below 2.0, supported by reduced debt and strong cash flow.

• Over 90% of production is in-house, with presence in more than 70 countries and 15 acquisitions since June 2020.

Strategic initiatives and market positioning

• Launched products in major retail chains, including 1,400 Walmart and 1,100 CVS locations.

• Made a minority investment in VIYO, with new product launches planned for Q1 2026 in the UK.

• Focused on expanding online, D2C, pharma, and FMCG/Big Box channels as key growth drivers.

• Prioritizing operational efficiencies, supply chain optimization, and geographic expansion into Asia and South America.

• Pursuing acquisitions aligned with premium, science-backed pet health products.

Financial targets and outlook

• Set new targets: annual double-digit organic growth and operational EBITDA margin above 26% midterm.

• Dividend policy targets 40% of net profit, adjusted for non-operating costs, with annual increases since 2021.

• Long-term net debt/EBITDA target below 2.0, with flexibility for acquisitions.

• Profitability to be driven by increased gross margin, scalable OpEx, synergies, and pricing opportunities.

• Pharma segment expected to deliver stronger growth and profitability than group average.