Slide 1: Half year report April - June 2024
Half year report APRIL - JUNE 2024 with Håkan Lagerberg, CEO Jenny Graflind, CFO
Slide 2: Q2 2024 Highlights
Q2 2024 Highlights Growth and profitability and lowering debt level Pet Retail and Online low double digit and Veterinary high single-digit growth Record quarter for both FlavorPal® and ProDen PlaqueOff® ingredient Two trademark acquisitions (HSP & Vet Worthy®) & acquisition in Canada, MedVant in Q3
Slide 3: Key performance indicators Q2 2024
Key performance indicators Q2 2024 Net revenue Change in Operational gross margin net revenue 630.5 MSEK 57.9% 10% Organic 10% Operational EBITDA Operational cash flow 140.9 MSEK 81.2 MSEK Net debt/EBITDA Margin Cash 22.3% 2.37 170.0 MSEK
Slide 4: Financial Highlights Q2 2024
Financial Highlights Q2 2024 Comments Net Revenue Operational EBITDA +19% 600 +10% 120 • 10% growth is organic 500 100 • Growth in: 400 80 • All segments 300 60 • All productcategories 200 40 20,2% 20,7% 22,8% 21,6% 23,2% 22,3% • All regions (except for RoW) 100 20 • Op. Gross Margin Q1 Q2 Q3 Q4 Q1
Slide 5: Financial Highlights Q2 2024
Financial Highlights Q2 2024 Comments • Negative change in WC • Higher inventory • Acq of 10M inv Net Debt / EBITDA Op. cash flow / Cash conversion • Higher receivables 3,00 120 -30% • Dividend pmt 36,5M 2,50 100 • Two asset acquisitions 38,4M 2,00 80 -0.2% • Amortized on debt 50 MSEK 1,50 60 • YTD
Slide 6: Key performance indicators H1 2024
Key performance indicators H1 2024 Net revenue Change in Operational gross margin net revenue 1.228 MSEK 57.8% 12% Organic 11% Operational EBITDA Operational cash flow 279.7 MSEK 151.8 MSEK Net debt/EBITDA Margin Cash 22.8% 2.37 170.0 MSEK
Slide 7: Rolling 4 quarters
Rolling 4 quarters 2021 570 510 420 270 SWEDENCARE
Slide 8: Product- and brandsplit
Product- and brandsplit 140 120 Contract Private/ Manufacturing CO Label 100 -15% 80 Other +6% 60 +77% +33% 40 +14% -45% +9% 20 +15% -
Slide 9: Net sales North America 485.0 MSEK, 6% growth
Net sales North America 77% 485.0 MSEK, 6% growth of total net revenue • Improved and channel focus leadership in NaturVet • “Breed specific” by NV partly launched, continues in Q3 (LY launches in H1) • Rx Vitamins first national distributing contract • Aligning inventory levels at exclusive partner
Slide 10: Net sales Europe 133.6 MSEK, 31% growth
Net sales Europe 21% 133.6 MSEK, 31% growth of total net revenue • All channels strong and manufacturing of soft chews ramping up in both UK and Ireland • Amazon transition in UK final, expecting growth from Q3 • Both internal and external European markets grow • Launch Wellichews, PO soft chews, Na
Slide 11: Net sales Rest of the world 12.0 MSEK, down 1%
Net sales Rest of the world 2% 12.0 MSEK, down 1% of total net revenue • Solid quarter • Asia with South Korea, Japan, Thailand largest and China showing signs of recovery • Brand winners: ProDen PlaqueOff®, nutravet® and NaturVet®
Slide 12: Priorities 2024
Priorities 2024 Growth, profitability and lowering debt level Closing right partners for NaturVet in Big box retail for 2025 and onwards Evaluating move from external to internal concerning manufacturing and online sales (utilizing Pet MD platform) Product launches and development Focus on strategic
Slide 13: European Market Strategy
European Market Strategy with Laszlo Varga, CCO Europe
Slide 14: Strong underlying factors in the European market
Strong underlying factors in the European market Europe is following the US trends of: 129 MILLION premiumizatation of pets CATS humanization ~70% view pet as part of family 166 Other factors that increase pet parents focus to preventative care are the increased life 106 MILLION million DOGS expecta
Slide 15: Well positioned in Europe
Well positioned in Europe • Introduce US brands to Europe • Expansion of strong local New product Brand categories brands to new markets • Topicals and grooming expansion products • ~23% of group sales, large majority in North America • Strategic online Online partnerships • Expand in marketplaces •
Slide 16: Leveraging our strong portfolio of brands
Leveraging our strong portfolio of brands Launch US brands • Launch of NaturVet by SwedenCare in late Q2 • Increased focus on PetMD on Amazon across Europe Q3-Q4 Brand • Introduce RXVitamins to veterinarian expansion sector in select markets - ongoing Strong European brands to more markets • Nutrave
Slide 17: Dermatology and Topicals
Dermatology and Topicals Introduce under existing brand umbrella • Nutravet’s Pet’s Choice range launched Q2 • NaturVet by Swedencare launch Q4 New product • Additional launches planned in Q4 Brand categories expansion Innovet range to more markets • Introduce Innovet products to the veterinary sect
Slide 18: Securing our success in the online growth
Securing our success in the online growth Strategic partnership • To introduce NaturVet® in Europe under the brand NaturVet by Swedencare, we have initiated a strategic partnership with Zooplus – the leading European online pet platform. Growing marketplaces • Added focus to Amazon across Europe Bra
Slide 19: We have the pieces for accelerate growth
We have the pieces for accelerate growth A strong product portfolio to expand Capture the largely untapped current offering in the supplement demand in Topicals and market in all of Europe Dermatology Brand expansion Strategic partnerships Building our online strengths to Online support expand our p
Slide 20: Sustainability highlights Q2
Sustainability highlights Q2 • Research and review of more sustainable product packaging alternatives in Vetio South. Results to be implemented across group • Double materiality assessment ongoing • Hire of Sustainability Controller to start in October 2024
Slide 21: Thank you for participating! Q&A
Thank you for participating! Q&A