Swedencare Ab · OMXSTO:SECARE
Swedencare Ab — Q4 2024 Earnings Presentation
29 slides from Swedencare Ab's earnings presentation, Feb 13, 2025
Slide 1: Q4 Report - Presentation will begin shortly
Q4 Report PRESENTATION WILL BEGIN SHORTLY
Slide 2: Q4 Report Oct-Dec 2024
Q4 Report OCT - DEC 2024 with Håkan Lagerberg, CEO Jenny Graflind, CFO
Slide 3: Q4 2024 Highlights
Q4 2024 Highlights Sales and EBITDA are at an all-time high, but growth in the quarter is 5% (4%organic), below our growth expectations NaturVet at -21%, rest of group 18% Accepted for trading under ticker SWDCF at OTCQX, New York. Facilitates trading of our share in the US VOHC-seal for our ProDen
Slide 4: Financial Highlights Q4 2024
Financial Highlights Q4 2024 Comments Net Revenue +5% 600 • Organic growth 4%, acquired 500 growth 1% 400 • Full year 9% growth – 9% 300 organic growth 200 • Gross margin 58,5% - strongest since 2022 100 • Less inventory write-offs Q3 Q4 Q1 Q2 Q3 Q4 • Lower COS with 2023 2023 2024 2024 2024 2024 Ope
Slide 5: Financial Highlights Q4 2024
Financial Highlights Q4 2024 Comments • Negative WC-increased AR and inventory due to growth • Q: -20,1MSEK Net Debt / EBITDA Op. cash flow / Cash conversion • 2024: -76,2 MSEK • CapEx <2% of net revenue 3,00 120 • Repayments on loan: 2,50 -22% 100 -35% • Q: 75MSEK 2,00 80 • 2024: 200MSEK 1,50 60 •
Slide 6: Key performance indicators
Key performance indicators 2024 Net revenue Change in Operational gross margin net revenue 2 530.2 MSEK 57.7% 9% Organic 9% Operational EBITDA Operational cash flow 560.7 MSEK 359.1 MSEK Net debt/ProformaEBITDA Operational EBITDA-Margin Cash 2.05 22.2% 186.8 MSEK
Slide 7: Rolling 12 months
Rolling 12 months Qi Q2 Q3 Q4 Qi Q2 Q38 Q4 QI Q2 Q8 Q4 QI Q2 Q3 Q4 2021 2022 2023 2024 HE Net revenue ME BITOA HERE Operational EBITDA 8 SWEDENCARE
Slide 8: Product- and brandsplit
Product- and brandsplit 2023 2024 2023 2024
Slide 9: Net sales North America 474,7 MSEK, 2% growth
Net sales North America 73% 474,7 MSEK, 2% growth of total net revenue • Dental, biggest growth, pet retail and online • Production and online strong • Pharma division best Q ever • NaturVet last negative Q (next slides) • Treats category, Riley’s successful first year, looking to expand into new ma
Slide 10: NaturVet - 2024
NaturVet - 2024 • Org Growth -21% for Q4. -10% for 2024 • Private label (3 largest accounts) • Customer pushing orders into 2025, high comps due to order volume- and price adjustments last year • 3 customers on board going forward and better visibility and improved forecasting implemented • The last
Slide 11: NaturVet - 2025
NaturVet - 2025 • Rebranding will be presented at Global Pet Expo March 2025 • Expanded and strengthened relationships with all top Branded customers (resets and line reviews completed) • Expansion with the biggest Pet Specialty Retailer, already in Q1 and Q2, key expansion opportunity Q3 • Private
Slide 12: Net sales Europe 161,0 MSEK, 20% growth
Net sales Europe 24% 161,0 MSEK, 20% growth of total net revenue • Dental strongest product group • UK • Strong Amazon • Weaker veterinary • Italy & Nordics: continuing the strong trend • zooplus co-op, a promising start • Several product launches in the quarter and will continue in 2025 • Manufactu
Slide 13: Net sales Rest of the World 17,4 MSEK, down 5%
Net sales Rest of the World 3% 17,4 MSEK, down 5% of total net revenue • Q4 (and Q3) 2023 included Pharma deliveries to China • Without Pharma deliveries, sales increased by 37% • Asia top region (China, Japan, South Korea) • South America (Brazil, Chile, Uruguay) • More than doubled sales to co- la
Slide 14: Priorities 2025 and forward
Priorities 2025 and forward Growth and profitability, (lowering debt level) Capitalizing on 2024 strategic projects M&A reactivation – Focus on geographies not present and targets with unique features to our group Product launches and development Bi-annual employee survey Finalizing sustainability t
Slide 15: U.S. Veterinary Market
U.S. Veterinary Market Brian Nugent, Chief Commercial Officer Swedencare North America
Slide 16: Swedencare U.S. Veterinary Mission
Swedencare U.S. Veterinary Mission Our mission is to be the leader in the advocacy and innovation to the Veterinary community by providing premiere products and practical business solutions that support the growth, profits and success of Veterinary practices.
Slide 17: Swedencare Vet Solutions
SWEDENCARE VET SOLUTIONS… ü Spent last 1.5 years consolidating operations. ü Poised for Commercial Growth!
Slide 18: Swedencare Vet Solutions
SWEDENCARE VET SOLUTIONS... . ee Branded Label Program SWEDENCARE
Slide 19: Swedencare U.S. Brands Snapshot - Stratford
Swedencare U.S. Brands Snapshot Grooming Stratford • Distributed exclusively through MWI Vet Supply • Products available in: Medicated Stratford Brand/Label MWI VetOne Private Label Clinic Exclusive Label Otic Wellness Sales Team OSR’s ~ 165 ISR’s ~ 140 Dental
Slide 20: Swedencare U.S. Brands Snapshot - Animal Pharmaceuticals
Swedencare U.S. Brands Snapshot Grooming Animal Pharmaceuticals • Distributed exclusively through Patterson Vet Supply • Products available in: Medicated Animal Pharm Brand/Label Clinic Exclusive Label Otic Wellness Sales Team OSR’s ~ 180 ISR’s ~ 100 Dental
Slide 21: Swedencare U.S. Brands Snapshot - RX Vitamins
Swedencare U.S. Brands Snapshot RX Vitamins • Distributed direct and recently through MWI Vet Supply • Products available in RX Brand • Unique products with Clinical Studies • More holistic line • Works closely with Canadian Division
Slide 22: Swedencare U.S. Brands Snapshot - Vet Classics
Swedencare U.S. Brands Snapshot Grooming Vet Classics • Distributed through MWI, Patterson, Covetrus & Midwest • Products available in Vet Classic Label Medicated • Sales/Marketing handled by Stratford Otic Wellness Dental
Slide 23: Swedencare U.S. Brands Snapshot - ProDen DentalCare
Swedencare U.S. Brands Snapshot ProDen DentalCare • Distributed through MWI, Patterson and Covetrus • Products available in exclusive Veterinary Only Label • “Powered by: PlaqueOff” • Sales/Marketing handled by Stratford
Slide 24: US Veterinary Market 2024 & Beyond: Industry insights
US Veterinary Market 2024 & Beyond Industry insights Continued shift & Vet visits down purchase migration to Spend per visit up online/home delivery Focus on # of clinics Increasing, Increasing Owner consolidation slowing Compliance Estimated Vet Vet’s cite declining pharmacy ‘24 vs ’23 growth sales
Slide 25: Clinic Branded Label Program
US Veterinary Market 2024 & Beyond Q: So how can Swedencare help solve these problems for the Vet? A: Provide Veterinarians with products, programs and services that overcome their obstacles. Clinic Branded Label EMPLOYEES We redesign our labels making them exclusively for an individual Vet Program
Slide 26: Clinic Branded Label Program
US Veterinary Market 2024 & Beyond Q: So how can Swedencare help solve these problems for the Vet? A: Provide Veterinarians with products, programs and services that overcome their obstacles. Clinic Vets that Clinic Label have: Branded 1. 2. Stronger bond between pet owners/vet Higher % of pet owner
Slide 27: Oral products and finger wipes for owner compliance
US Veterinary Market 2024 & Beyond Q: So how can Swedencare help solve owner compliace problems for the Vet? A: Continue to innovate products that promote owner compliance. Topical/Otic Finger roducts Our R&D teams Oral P continually launch products in palatable Wipes delivery forms that dogs love w
Slide 28: US Veterinary Market outlook and Vet Division initiatives
US Veterinary Market 2024 & Beyond The outlook in the U.S. Veterinary market is strong for 2025 and beyond. Vet Division Initiatives Benefits Status Consolidate Group Brands as one team serving the US Vet One Sales, Marketing, Service, In process. Completed by Q2 Industry Tradeshow team ‘25 Continue
Slide 29: Thank you for participating! Q&A
Thank you for participating! Q&A