Swedencare’s net revenue stood at SEK1.2 billion ($110.6M/€102M) in the first 6 months of 2024, a 12% increase from SEK1 billion ($92.3M/€85M) during the same period last year.
Profit after tax increased to SEK51 million ($4.7M/€4.3M) from SEK33.5 million ($3M/€2.8M) in H1 2023.
The North American market generated over 3 quarters (78%) of this revenue, amounting to SEK781.3 million ($72.1M/€66.4M).
Online, pet retail and the manufacturing segment display the highest growth for the group.
European performance
Europe accounted for 20% of total net revenue at SEK249 million ($22.9M/€21.1M). According to the company, sales in the region increased 34% year on year.
The company’s Chief Commercial Officer (CCO) for Europe, Laszlo Varga, says that Swedencare aims to introduce more products and brands from the US to the European market and expand the sales of its local brands. The company launched the NaturVet pet brand in Europe this quarter.
The group is also working to strengthen its position as an online player and is increasing strategic partnerships to improve its market position.
Quarterly performance
Swedencare posted SEK630.5 million ($58.1M/€53.6M) in revenue between April and June 2024, up 10% from SEK572.1 million ($52.7M/€48.6M) in Q2 2023. Profit after tax amounted to SEK20.9 million ($1.9M/€1.7M).
The European market grew the most (31%), bringing in 21% of the company’s revenue, SEK133.6 million ($12.3M/€11.3M).
North America grew 6% during Q4 and generated 77% of sales, SEK485 million ($44.7M/€41.2M).
Outlook
Swedencare expects more robust and consistent demand in the veterinary segment in the second half of 2024.
The company strongly believes that its manufacturing division will grow “significantly” in the coming years, bringing “more consistent revenue streams and opportunities to optimize the cost base.”
Reorganization of NaturVet’s sales and marketing departments, Swedencare’s largest group company, is also expected to give it a “significant competitive edge” regarding product launches and finding customer-specific solutions.
Swedencare also looks forward to its upcoming expansion into “big box retailers,” though the timeline may extend to 2025 and 2026.
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