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Solid revenue and profitability with improved operating cash flow
Summary of the period
Numbers in parentheses refer to outcome of the corresponding period of the previous year.
Second quarter: April 1st - June 30th, 2026
First half year: January 1st - June 30th, 2026
Significant events during the second quarter
During the quarter Swedencare has entered into an agreement with Svensk Kapitalmarknadsgranskning AB regarding the Certified Adviser services, beginning October 1st, 2026.
Swedencare has initiated an European launch of NaturVet by Swedencare.
Swedencare has held its first Capital Markets Day, which took place on June 2nd, 2026, in Stockholm.
Significant events after the second quarter
There are no significant events after the end of the second quarter to comment on.
Words from the CEO
The second quarter was characterized by steady performance in a continued volatile environment, with solid sales growth, improved cash flow and continued strategic progress. Net revenue amounted to 670 MSEK, corresponding to an increase of 4% compared with the previous quarter. A stronger Swedish krona had a negative impact on sales, while the effect on earnings was limited due to our locally balanced revenue and cost structure.
The EBITDA margin was 19.3%, and EBITDA amounted to 129 MSEK, representing a slight improvement compared with the corresponding period last year and in line with the previous quarter. Cash flow from operating activities was strong and amounted to 78 MSEK, enabling investments in production capacity, dividend payout as well as further debt reduction during the quarter. Despite the strong cash generation, net debt/EBITDA increased slightly, primarily as a result of including a expected earn-out payment in April 2027 related to our latest major acquisition, Summit Vet. Summit Vet has performed strongly over the past quarters and grew by more than 20% during the quarter, while maintaining high profitability.
Organic growth amounted to 7%, which remains ahead of the market but below our own expectations of double-digit growth The deviation was primarily driven by a new FDMC customer delaying its launch delivery. We continue to see significant potential in the FDMC/Big Box and Online channels in North America.
The postponed deliveries affected North America, where organic growth was negative at -3%. As communicated, we expect a stronger second half of the year, driven by improved Online sales, gradually increasing volumes in Big Box and larger veterinary partnerships.
Europe and the production segment continued, as in the previous quarter, to deliver very strong results, with growth of 19% and 25% respectively. The performance in the production segment is particularly impressive given that demand within dermatology remains weaker than expected. At the same time, production in the EU/UK and Pharma in particular is seeing very high demand, both from existing customers and through new customer enquiries. We are therefore continuing to expand both capacity and organization to meet this increased demand.
In Europe, activity levels were high, including the launch of NaturVet by Swedencare, a completed Amazon transfer for all European markets and the continued expansion of our veterinary brands into new markets. UK, Italy and the Nordics contributed particularly positively to the segment’s momentum together with export markets.
ProDen PlaqueOff® continues to perform strongly, with organic growth above 30%. The brand is growing in all segments, but the export business managed from our Malmö office is particularly worth highlighting. The Asian markets showed strong growth, and it is encouraging to see China once again demonstrating solid demand and, by a clear margin, returning as our largest market where wo do not have our own subsidiary.
Our second major brand, NaturVet®, had a weaker quarter, partly affected by a somewhat softer US market than expected. In May in particular, consumers were more cautious, visibly affected by fuel prices and general economic uncertainty, however the quarter finished in a more positive way. During the quarter, we also completed the final step of a major reorganization in the sales department at NaturVet and now look forward to focusing fully on sales, customer partnerships and new product launches. Geoff provides further details on the foundations that have been established to drive profitable and sustainable long-term growth on the following page.
Our priorities for the second half of the year are clear: to accelerate growth in prioritized channels, capitalize on increased demand within production and Pharma, gradually strengthen profitability and continue to generate strong cash flow. Taken together, this gives us a solid foundation to create long-term value for shareholders, customers and employees.
Worth a special mentioning is that I would like to congratulate Innovet at its 30-year anniversary, thank the entire organization for its commitment and execution during the quarter, and wish you all a wonderful summer.
Håkan Lagerberg
Malmö July 22nd, 2026
The complete half year report is attached to this press release and is available at www.swedencare.com.
Swedencare invites shareholders and analysts to a presentation of the half year report where CEO Håkan Lagerberg and CFO Jenny Graflind will comment on the report. Geoff Granger, CEO of the subsidiary NaturVet, will also participate on the webinar. The presentation will be held at 10:30-11:15am CEST and can be followed via live webinar.
Please use this link to join the webinar: https://us06web.zoom.us/j/86396450004
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