Europe emerges as key growth driver for Swedencare in Q1

Swedencare reported SEK 650 million ($60M/€56M) in revenue for the first quarter of fiscal year (FY) 2026, which ended 31 March. This reflects a 1% year-over-year (YoY) increase, down from the 7% growth recorded in the same period last year.

Net income of the Malmö-based firm declined 25.9% YoY from SEK 23.9 million ($2.2M/€2.1M) to SEK 17.7 million ($1.6M/€1.5M).

Organic growth amounted to 11%, improving from 5% in Q1 2025, primarily driven by the dental and pharma product groups. CEO Håkan Lagerberg says the results are “in line” with the company’s long-term target of sustainable annual double-digit organic growth.

“This marks the third consecutive quarter we deliver double-digit organic growth,” he says.

Acquired growth

Meanwhile, acquired growth reached 4%, driven by the acquisition of Summit Vet in April 2025.

According to Lagerberg, revenue performance for the quarter was negatively affected by a stronger Swedish krona, while the impact on earnings was limited by the company’s locally balanced revenue and cost structure.

As reported in the trading update for the first quarter of FY2026, operational earnings before interest, taxes, depreciation and amortization (EBITDA) increased 3% YoY to SEK 127.7 million ($11.8M/€11M), with an EBITDA margin of 19.6%.

Top categories

Swedencare’s nutraceuticals portfolio contributed the highest revenue at SEK 265.1 million ($24.5M/€22.8M), followed by dental at SEK 151.1 million ($14M/€13M) and topicals and dermatology at SEK 120.9 million ($11.2M/€10.4M).

However, pharma posted the strongest YoY growth, rising from SEK 21.4 million ($2.3M/€1.97M) in 2025 to SEK 63.1 million ($6.8M/€5.8M) in 2026.

Regional performance

Despite a 10% YoY decline in revenue, the North American segment contributed 57% of total net revenue, at SEK 371 million ($34.3M/€31.9M). The decline was due to the weaker US dollar against the SEK.

However, organic growth reached 5%, primarily driven by NaturVet brand sales on Amazon, which became in-house from April 2025. ProDen PlaqueOff also delivered a strong quarter within the segment, both online via Amazon and other online retailers and through physical pet stores.

Meanwhile, private-label sales dropped 52% YoY after reaching an all-time high in Q4 2025.

For the European segment, revenue reached SEK 153.8 million ($14.2M/€13.2M), rising 38% YoY, with organic growth of 21% and acquired growth of 23%. The segment contributed 23.6% to total revenue. Summit Vet contributed SEK 26 million ($2.4M/€2.2M) during the quarter.

In addition, the dental product group recorded the fastest growth during the period, driven by Amazon sales.

Production rise

The production segment, which comprises manufacturing capabilities and expansions, reported SEK 125.5 million ($11.6M/€10.8M) in revenue, up 9% YoY.

This growth was primarily driven by pharma, which reported strong contract manufacturing during the quarter, including in Europe.

Net revenue in the segment is distributed geographically, with 57% from North America, 39% from Europe and 4% from the rest of the world.

Outlook

For FY2026, Swedencare aims to achieve double-digit organic growth and an operational EBITDA margin above 26% in the midterm, subject to flexibility for acquisitions.

The company also plans a full-scale European launch of NaturVet, expanding its reach beyond the initial online launch on Amazon and Zooplus.

Swedencare enters the rest of 2026 with strong momentum in Europe, according to the company CCO Laszlo Varga.

“With continued development of NaturVet by Swedencare, a proven model for faster innovation, and several promising launches, we are well-positioned to further strengthen our presence and drive growth in the segment,” he concludes.