Swedencare Ab · OMXSTO:SECARE
Swedencare Ab — Q3 2024 Earnings Presentation
20 slides from Swedencare Ab's earnings presentation, Oct 23, 2024
Slide 1: Interim report July - Sept 2024
Interim report JULY - SEPT 2024 with Håkan Lagerberg, CEO Jenny Graflind, CFO
Slide 2: Q3 2024 Highlights
Q3 2024 Highlights 9% Organic growth, Negative growth at Garmon/NaturVet – Rest of group delivered 30% growth Overall pet health market has solid growth in major markets and a pick up in M&A activities, NA most active Veterinary and Online strong growth, Pet slower ESG, increase recycled plastic con
Slide 3: Key performance indicators Q3 2024
Key performance indicators Q3 2024 Net revenue Change in Operational gross margin net revenue 641.0 MSEK 57.5% 6% Organic 9% Operational EBITDA Operational cash flow 135.7 MSEK 125.6 MSEK Net debt/EBITDA Margin Cash 21.2% 2.22 193.1 MSEK
Slide 4: Financial Highlights Q3 2024
Financial Highlights Q3 2024 Comments Net Revenue Operational EBITDA +0% 600 +6% 120 • 9% growth is organic 500 100 • Regional Growth 400 80 • North America 2% 300 • Europe 30% 60 200 20.7% 22.8% 21.6% 23.2% 22.3% 21.2% • RoW -28% 40 100 20 • Op. Gross Margin Q2 Q3 Q4 Q1 Q2 Q3 • In line with expecta
Slide 5: Financial Highlights Q3 2024: Net debt and cash flow
Financial Highlights Q3 2024 Comments • Positive change in WC • Lower inventory • Lower AR Net Debt / EBITDA Op. cash flow / Cash conversion -7% 3,00 120 • Acq. of MedVant 27,7MSEK • Amortized on debt 50 MSEK 2,50 -23% 100 • YTD CapEx (excl acq assets) 2,00 80 31,4 MSEK/<2% of Net Sales 1,50 60 1,00
Slide 6: Key performance indicators YTD 2024
Key performance indicators YTD 2024 Net revenue Change in Operational gross margin net revenue 1,868.9 MSEK 57.7% 10% Organic 10% Operational EBITDA Operational cash flow 415.4 MSEK 277.4 MSEK Net debt/EBITDA Margin Cash 22,2% 2.2 193.1 MSEK
Slide 7: Rolling 12 months
Rolling 12 months — a 2399 2457 2496 “SSsggezsSSeeeeaazs gy tice a oS8SSssstsezee Qi Q2 G8 Q4 6 QI 2 QB 4 QI Ql QB 4 QI QR QB 2021 2022 2023 2024 HE Nettoomsaittning ME EBITDA [ Operationell EBITDA 8 SWEDENCARE
Slide 8: Product- and brandsplit in Q3
Product- and brandsplit in Q3 2023 2024 2023 2024
Slide 9: Net sales North America 480,8 MSEK
Net sales North America 75% 480,8 MSEK of total net revenue • Low growth due to Garmon/NaturVet • Amazon partner negotiation and PL will both pick back up in Q4 • Amazon Q3 OTD sales up 13%, our sales to partner down -10% • Negotiations with partner finished will take over ourselves from 2026 • Stro
Slide 10: Net sales Europe 145,5 MSEK
Net sales Europe 23% 145,5 MSEK of total net revenue • Growth in all European entities except one hit by cautious UK Vet groups • Both branded and production grew strongly • Record Q AZN UK-fully transitioned, same for EU-8 in 2025 • Several new joint products launched in Italy • Ecom, influencer ma
Slide 11: Net sales Rest of the World 14,7 MSEK
Net sales Rest of the World 2% 14,7 MSEK of total net revenue • Decline due to comp with Asian Pharma dev project. Branded product sales up 10%, ProDen PlaqueOff, RX Vitamins, NaturVet and nutravet key drivers • Asia (except China), Australia, South America key markets
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 Move from external to internal concerning manufacturing and online sales (utilizing Pet MD platform) Product launches and development Research-based long-term stra
Slide 13: Q3 2024 Presentation John Kane, Vetio CEO
Q3 2024 Presentation John Kane Vetio CEO & Swedencare Group Production Director
Slide 14: Group Total Revenue Trend
Group Total Revenue Trend* * Include sales to Swedencare entities
Slide 15: Vetio Animal Health At a Glance
Vetio Animal Health At a Glance MISSION GLOBAL OPERATIONS CUSTOMERS Develop and Manufacture products that Montreal, QC, CAN Waterford, IRE improve the lives of animals, while ensuring the safety, quality, and compliance of the products to the highest Jupiter, FL, USA Hastings, UK industry standards
Slide 16: Global Companion Animal Industry
Global Companion Animal Industry •$8.3B Market¹ $10 Billion •Parasiticides $3.7 Billion (6.2% CAGR) Dollar Available •Anti-Infectives $1.9 B (5.3%) Market Veterinary Pharmaceuticals •Other $2.7 B (5.8%) $2.5 Billion @ Manufacturing •$1.7B Market •North America $ & % $1.25 Billion CDMO Pet •Europe 5.
Slide 17: Favorable Market Trends for Vetio
Favorable Market Trends for Vetio Trend Drivers Vetio Value Proposition •Reduce fixed costs and increase flexibility •Vetio complete solution from formulation Outsourcing to development through manufacturing •Concerns with human & animal products in the CDMOs same facility •Vetio dedicated to Animal
Slide 18: Global Performance
Global Performance Vetio North 2024 Vetio EU 2024 >15% growth YTD >20% growth YTD - Largest development pipeline ever - Established this year (SC Waterford facility) - Launched 8 new FlavorPal™ palatants with - Soft chew production area completed in Q3 VMFs (Veterinary Master Files) using CVP proces
Slide 19: Next 4 Quarters
Next 4 Quarters • Execute on existing Drug Development pipeline and manufacturing launches • Drive product placements of our growing line of FlavorPal™ Vetio North Palatants • Support the growing global project pipeline with the U.S. technical team • Tech transfer the Soft Chew Technology platform t
Slide 20: Thank you for participating! Q&A
Thank you for participating! Q&A