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Double digit growth with improved profitability
Summary of the period
Numbers in parentheses refer to outcome of the corresponding period of the previous year.
Third quarter: July 1st - September 30th, 2025
First nine months: January 1st - September 30th, 2025
Significant events during the third quarter
Swedencare launches ProDen DentalCare® in the Canadian veterinary market through MedVant.
Significant events after the third quarter
There are no significant events after the end of the third quarter to comment on.
Words from the CEO
The third quarter’s net revenue of 713 MSEK represented organic growth of 15% compared to Q3 2024. Delivering over 700 MSEK for the first time is especially satisfying since currency effects have not worked in our favor this year. Our operational EBITDA amounted to 155 MSEK, a margin of 21.7% and I expect continued improvement in profitability as we realize the benefits of marketing efforts and economies of scale. For the year, our organic growth amounts to 9%, and as previously communicated, I expect to deliver double-digit growth when we sum up the full year 2025. Improved cash flow with lower capital tied up, despite growth, has enabled the payment of earn-outs, investment in a minority stake in Viyo—an interesting company and brand—as well as amortization of 75 MSEK during the quarter. This, together with a reduced net debt/EBITDA, is proof that strong growth can be combined with sound financial results. More information about Viyo and its opportunities can be found in the report on page 27.
External environment
No industry is unaffected by the turbulent world we operate in. However, the pet industry has delivered stable growth through every decade since the mid-20th century, and I am convinced that this will continue to be the case in the current decade as well. There has been some talk about a declining purchasing interest among pet owners in general, but I cannot confirm this. Across all our markets, we see an unchanged or slightly stronger market in terms of interest and purchasing behavior among pet owners. This is likely largely due to the segment we operate in—high-quality supplements and dermatological products—continuing to attract interest, especially from new pet owners.
Europe
The entire year has been characterized by a strong European segment overall, which during the quarter had organic growth of 19%. The Nordics and the UK continue to pull up our average, even though some market players in the UK has indicated a weaker market. Our UK-based companies grew organically by 36%, mainly driven by online and the veterinary channel. During the quarter, we shifted our European (excluding UK) Amazon sales to handle inventory ourselves and we will receive full sales revenue in all EU markets going forward. This transition has negatively affected the quarter, but I expect growth to pick up already in Q4.
North America
North America also delivered strongly with organic growth of 18%. In terms of channels, Online and Pet Retail are the strongest compared to a still somewhat cautious veterinary market, which affects both the North American and manufacturing segment. The biggest event of the quarter is our entry into “Big Box retail,” which we have been working on for the past two years. We describe this sales channel in more detail in the report, but I am extremely proud that we now have our products in 1,400 Walmart stores, 1,100 CVS stores, and over 140 stores in a regional Midwest chain. We are focused on offering caring pet parents our quality products wherever they prefer to shop!
Manufacturing
Three out of four units in the segment delivered double-digit growth, but as our largest unit experienced a decline of -13%, the quarter sums up to 3% growth. Large veterinary customers and distributors in North America are still focused on optimizing inventory management with the goal of reducing inventory levels.
Our strategy is to expand our product manufacturing capabilities, which means we will expand both in Vetio South and Vetio North. John Kane, Production Director, shares more about these plans in this report and during our Q3 webinar presentation. Our European manufacturing units have strong demand from both external and internal customers. During the quarter, several new customers have been added for next year, which suggests that the good growth will continue.
Future goals and expectations
As part of both exchange and education, we make a board trip to one of our companies around the world every year. This year, the autumn trip went to Canada and Vetio North, our CDMO (Contract Development & Manufacturing Organization) focusing on pharmaceutical products. It was a successful visit at an important time as we are both expanding our product offering and are in the process of expanding our production for projects this year, but especially for 2026 and beyond. Activity is high, and the team in Montreal appreciated the interest shown by the board. The board is in the final phase of establishing new long-term financial goals for Swedencare, which we plan to present before the end of the year.
Thank you for your interest, and I want to congratulate the entire organization for a focused and intense quarter that resulted in a sales record and improved profitability!
Håkan Lagerberg
Malmö October 22nd, 2025
The complete interim 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. John Kane, Production Director, will also participate on the webinar. The presentation will be held at 10:30-11:30am CEST and can be followed via live webinar.
Please use this link to join the webinar: https://us05web.zoom.us/j/87904121957
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