Swedencare posts record sales in 2024, but growth slows

614 km south of the capital of Stockholm, the Malmö-based pet care company reported net revenue of SEK661.3 million ($61.8M/€58.9M) in the fourth quarter of 2024, a year-on-year (YoY) increase of 5%. Operational earnings before interest, taxes, depreciation and amortization (EBITDA) totaled SEK145.3 million ($13.6M/€12.93M), marking 9% YoY growth.

For the full year 2024, Swedencare posted a net revenue of SEK2.53 billion ($240M/€230M), an increase of 9% against 2023. While it’s a revenue record for the company, growth has slowed since last year. Net revenue increased by 27% between 2022 and 2023.

Organic, currency-adjusted growth was 9% in 2024, down from 15% in 2023. Operational EBITDA was SEK560.7 million ($52.4M/€49.9M), an increase of 14%.

CEO Håkan Lagerberg attributed some of the recent weakness to private labels. Price and volume adjustments in 2023 resulted in significant orders at the end of the year. He states that these did not occur this year, and the company’s two largest customers postponed their orders until 2025.

European market growth

The report showed that Europe is leading Swedencare’s growth – sales on the continent increased 29% in 2024.

“Europe continues to lead our growth, with the UK, the Nordics and Italy standing out, Lagerberg writes. “I also want to mention Greece, which is a small market gaining market share year after year and serves as a good example of the results of becoming part of Swedencare.”

However, the company’s UK vet sector was weak. Lagerberg says he expects this trend to reverse due to new product launches and improving economic conditions.

Outlook

“No one has missed following the US presidential election and what has happened since,” Lagerberg writes in his statement. However, he says the company is expecting only a limited impact from the new trade barriers pushed by President Trump.

While Swedencare has facilities in North America, the EU and the UK, many processes have been implemented to minimize transportation costs. Thanks to this setup, the Swedish pet care player expects a limited impact from trade barriers.

The company was upbeat about future growth. “I am cautiously optimistic that we will deliver double-digit organic growth in the coming years, which is also likely to improve profitability,” Lagerberg says.

He adds that the company is focusing on mergers and acquisitions in 2025. “In addition to the smaller add-on acquisitions made in 2024, we are now ready to consider more significant opportunities,” he concludes.