Swedencare posts positive results for 2023 despite market uncertainties
The Swedish pet care firm describes 2023 as a “year of consolidation” in its newly released annual report.
With a focus on growth and finding and implementing opportunities to maximize internal efficiencies and cost savings, Swedencare says it had the “widest ever” range of product offerings in 2023 in most therapeutic areas.
The company says it has placed more emphasis on manufacturing products on its own, enabling it to have greater control over quality, availability and profit margins. According to the figures, it increased in-house production from 76% in 2022 to 84% in 2023.
Financial results for 2023
Swedencare Group’s net revenue in 2023 increased by 27% to SEK 2.3 billion (€200M/$217M).
In terms of sales, the company’s biggest markets in 2023 were North America (79%), followed by Europe (18%) and the rest of the world (3%).
The company’s operating profit before amortization (EBITA) for the 2023 fiscal year amounted to SEK 421.4 million (€36.8M/$39.9M).
Its operational gross margin decreased to 55.4% in 2023 compared to 57.5% in 2022, which the company mainly attributes to raw material costs, product mix, and “higher inventory write-offs.”
Swedencare increased its staff to 560 in 2023, compared to 486 in the previous year. Its employees are spread across its offices in Sweden, the UK, Italy, France, Greece, Ireland, Spain, the US and Canada.
Last year, Swedencare acquired American start-up Vet Buyers Direct for $2.5 million (€2.3M). The company offers monthly subscription plans to veterinarians, giving them access to products, services and brands at favorable prices.
New investments and acquisitions?
The Stockholm-based firm expects “continued strong growth” within the global pet sector this year, noting an increase in the number of pet owners and a rise in spending.
Swedencare is also looking to expand its manufacturing capacity from investments and acquisitions, allowing it to respond better to “growing demand” and facilitate in-house production for acquired companies.
The firm also indicated through acquisition opportunities that it plans to develop a wider product portfolio with new product launches in the pipeline—both in new markets and via new channels.
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