Slide 1: Q1 Report January - March 2024
Q1 Report JANUARY - MARCH 2024 with Håkan Lagerberg, CEO Jenny Graflind, CFO Geoff Granger, CEO NaturVet
Slide 2: Q1 2024 Highlights
Q1 2024 Highlights Acquisition of Rileys completed Jan 2nd – Treats as new product category Outperforming the market with double digit organic growth (12%) & stronger margins New sales strategy for NaturVet – CEO Geoff Granger to present Business development; Group opportunities, Product launches & E
Slide 3: Key performance indicators
Key performance indicators Q1 2024 Net revenue Change in Operational gross margin net revenue 597.4 MSEK 57.7% 14% Organic 12% Operational EBITDA Operational cash flow 138.8 MSEK Net debt/Proforma 70.6 MSEK Margin EBITDA Cash 23.2% 2.43 224.3 MSEK
Slide 4: Financial Highlights Q1 2024
Financial Highlights Q1 2024 Comments • 14% growth divided into 12% Net Revenue Operational EBITDA organic growth and 2% 600 +14% 120 +31% currency impact 500 100 • Revenue 400 80 • Growth in all segments and 300 60 geographic markets except 200 40 24,2% 20,2% 20,9% 22,8% 21,6% 23,2% RoW • Move of U
Slide 5: Financial Highlights Q1 2024
Financial Highlights Q1 2024 Comments • Negative change in WC • Higher inventory • Higher receivables Net Debt/Proforma EBITDA Op. cash flow & Cash conversion • Acquisition of Rileys® of 3,00 120 -29% 53 MSEK 2,50 100 2,00 80 -29% • 25 MSEK amortized on debt 1,50 60 3,39 3,40 3,40 2,90 2,63 2,43 80%
Slide 6: Rolling 4 quarters
Rolling 4 quarters 8 SWEDENCARE e
Slide 7: Product- and brandsplit
Product- and brandsplit PHARMA 4% (5%) TOPICALS/ DERMATOLOGY 23% (27%) OTHER 5% (5%) NUTRACEUTICALS 51% (50%) DENTAL 15% (12%) TREATS 2% (1%) nutravet® OTHER 4% (4%) 17% (18%) Pet MD 11% (9%) 7% (7%) : AV Naturvet’ 26% (30%) . PlaqueOff 20% (16%) \ PRIVATE/CO LABEL 3% (4%) SE SWEDENCARE
Slide 8: Net sales North America 469.5 MSEK, 11% growth
Net sales North America 79% 469.5 MSEK, 11% growth of total net revenue • Strong Online & Pet Retail with product launches presented end Q • Vet sales were affected by component shortage but picking up Q2 • Lower Pharma dev., as planned, increase in manufacturing and product sales (FlavorPal®), signe
Slide 9: Net sales Europe 115,4 MSEK, 37% growth
Net sales Europe 19% 115,4 MSEK, 37% growth of total net revenue • Growth in all except SwedencareUK (AZN change) and France • Despite a decline in Italian Pet Market, Innovet had a record quarter • Strong growth with soft chews despite capacity limitation • Launch of WelliChews, nutravet Pet Choice
Slide 10: Net sales RoW 12,5 MSEK, down 14%
Net sales RoW 2% 12,5 MSEK, down 14% of total net revenue • A solid quarter with South Korea, Japan, South America, and Australia • China is still slow but signs of come back • Pet food co-op’s continue to grow, delivered to all 4 partners and 1 major new global customer signed with deliveries in Q2
Slide 11: Priorities 2024
Priorities 2024 Growth and profitability and lowering debt level Deliver on strong pipeline Continued move from external to internal Product launches and development Solidifying and developing relationships with major customers Co-op and M&A opportunities
Slide 12: Pet Supplements U.S. Market Dynamics + Channel Strategy Overview
Pet Supplements U.S. Market Dynamics + Channel Strategy Overview 4/25/2024
Slide 13: Pet Supplements rapidly approaching $2B in annual sales
Pet Supplements rapidly approaching $2B in annual sales • eCommerce Pureplay Total U.S. (Millions) channel driving 2/3 of U.S. volume • FDMC primed for growth Channel $ Share as traditional retailers lean into category $295.1 .Com Pureplay 66.7% FDMC 17.2% $313.4 $1,217.4 Pet Specialty/Ag 16.2% Gran
Slide 14: But … Pet Supplements is still an emerging category
But … Pet Supplements is still an emerging category • ~60 percentage point gap between pets being administered Supplements and human usage • Drivers of gap are overall category confusion, belief that diet is enough and “reactive” approach to pet health Source: Numerator Panel + NaturVet internal est
Slide 15: NaturVet growth opportunity in FDMC + .com pureplay
NaturVet growth opportunity in FDMC + .com pureplay • NaturVet focus has been Total U.S. (Millions) on Pet Specialty/Ag, ~3X penetration of market • Food, Drug, Mass & Club unexplored to-date Channel $ Share $42.9 Of NaturVet .Com Pureplay 51.9% FDMC 0.4% $46.7 Pet Specialty/Agg 47.7% $0.4 .Com Pure
Slide 16: NaturVet #1 in channels where we have chosen to focus
NaturVet #1 in channels where we have chosen to focus • Naturvet remains #1 volume in Pet Specialty + Ag channel even without full distribution and emerging competition Source: NaturVet internal estimates
Slide 17: NaturVet also #1 in expanded bricks & clicks segment
NaturVet also #1 in expanded “bricks & clicks” segment • Naturvet remains #1 2023 “Bricks and Clicks” $ Share volume in “Bricks and Clicks” segment even w/ inclusion of FDM (i.e. NATUR VET 11.4% Walmart) + emerging competition PRIVATE LABEL 10.3% • Competition is closing in COSEQUIN 10.1% fast • “Br
Slide 18: Emerging Brands driving growth and further confusion
Emerging Brands driving growth and further confusion $’s % Chgv • Pet parents and retailers .Com Pureplay 2023 $’s LY are seeking out strategic partners to help them ZESTY PAWS $ 123,198,555 0.0% navigate the space PETHONESTY $ 70,450,470 2.7% PETLABCO. $ 40,301,112 40.2% • The strength of the Natur
Slide 19: We are well positioned to be the strategic partner and trusted advisor of choice
We are well positioned to be the strategic partner and trusted advisor of choice Organizational Category Thought Marketing Innovation Infrastructure Leader • New CCO (1/15) • Partner w/ 3rd party • Meet the consumer • Delight through data/analytics resource where they choose to be differentiated ins
Slide 20: Thank you for participating! Q&A
Thank you for participating! Q&A Coming Guest speaker for upcoming webinars: Q2 – Laszlo Varga, COO Europe Q3 – John Kane, Production Director Q4 – Brian Nugent, COO North America