H1 sees mixed results for Swedencare as profit slips 67%

Swedencare achieved net revenue of SEK 1.29 billion ($122.6M/€113.6M) from January to June 2025, representing a 5% year-over-year (YoY) increase. In H1 2024, the firm reported SEK 1.22 billion ($116.1M/€107.4M) during the same period last year.

However, profit after tax dropped significantly by 67% to SEK 16.9 million ($1.6M/€1.5M). This resulted in earnings per share for the period being SEK 0.11, down from SEK 0.32 previously.

Operational EBITDA also declined 12% YoY to SEK 247.4 million ($23.5M/€21.8M), impacted by operational adjustments totaling SEK 32.8 million ($3.1M/€2.9M).

These included merger and acquisition-related expenses, costs associated with implementing a new enterprise resource planning (ERP) system and a non-cash adjustment related to the fair value assessment of acquisition-related stock.

Q2 insights

Net revenue totaled SEK 646.3 million ($68M/€57.7M), representing a 3% increase compared to the same period in 2024. From April to June, Swedencare posted a net loss of SEK 6.9 million ($725.3K/€616.3K).

Swedencare’s CEO, Håkan Lagerberg, notes that the postponement of a major delivery to American retail corporation Walmart, originally scheduled for July, impacted the numbers. “We would have achieved double-digit organic growth,” he states.

“Despite the delay in our order, the actual in-store launch remains on schedule, and by the end of July, we will be present in nearly 1,400 stores,” the CEO adds.

Current headwinds

Lagerberg observes that tariff threats, currency fluctuations and ongoing conflicts naturally contribute to market uncertainty, leading some larger customers to remain cautious with their orders and inventory buildup.

Given that the company’s biggest operation is in the US, it also experienced an 8% drop in currency during the second quarter, which affected its sales.

“However, the effect on our profit is marginal as we have a natural hedging with the majority of costs and revenues in local currency,” he says.

“The pet industry is stable and resilient, which is why most market experts expect the industry’s growth to remain around 5%,” Lagerberg adds. “We feel confident about a continued stronger market for us, as Online – where we are closest to the end customer – is the channel where we have the strongest growth.”

Naturvet and Summit

Laszlo Varga, Swedencare’s CCO for Europe and Head of E-commerce, notes that the company’s pet retail segment has been somewhat weaker due to Naturvet’s rebranding and inventory optimization at Swedencare’s larger customers and distributors.

“All of them want to launch the new design as soon as possible, but at the same time need to sell out the products with the old design from their inventory first. When the current quarter is over, all our larger customers will have launched, and with CVS and Walmart as new customers and expansion with Petsmart, Q3 and beyond is expected to show strong sales development,” Varga says.

Meanwhile, Swedencare’s latest acquisition, Summit, performed well despite slightly lower profitability due to accounting adjustments related to its integration into the group.

“We have already begun developing soft chews incorporating some of Summit’s active ingredients, and we hope to have these approved for launch early next year,” he states.

“Our focus going forward regarding acquisition discussions will be more focused on new geographies as we see Asia as a very interesting market going forward where both China and India have good prospects for strong growth,” Varga adds.