Swedencare starts 2025 with revenue increase, but CEO warns about uncertainty

The Malmö-based pet healthcare company posted net revenue of SEK 641.1 million ($66.7M/€58.7M) in the first quarter of 2025, an increase of 7% year on year (YoY), down from last year’s Q1 YoY growth rate of 14%.

Organic growth reached 5% YoY from January to March 2025, marking a decrease from 12% YoY in Q1 2024.

Earnings before interest, tax, depreciation and amortization (EBITDA) totaled SEK 124.5 million ($13.0M/€11.4M), marking a 10% decrease YoY and an EBITDA margin of 19.4%. EBITA, which is the same metric but with depreciation costs included, declined by 13% YoY.

Still, cash flow increased year-on-year by 37% to SEK 96.7 million ($10.1M/€8.9M).

The company has been growing strongly in Europe, with the Nordics, Italy and Greece boosting its portfolio in 2024. The Nordics and the UK brought strong growth for the company in the first months of the year.

M&A impact

The company has continued to expand into new areas this quarter with 2 major deals. Swedencare bought the UK’s Summit Veterinary Pharmaceuticals in the spring, and its sales have contributed to non-organic growth.

“Summit is a highly profitable enterprise, and we have identified both growth and profitability opportunities for the coming years,” says CEO Håkan Lagerberg. Summit’s last fiscal year brought a turnover of £7.3 million ($9.7M/€8.6M).

The company also bought its partner NaturVet’s Amazon business, bringing new revenue from the supplement brand into Swedencare.

Lagerberg signaled that the company is not looking for new M&A opportunities in the near future. “After an intense acquisition period, we will now focus on integration, synergies and implementing new strategies in the coming months,” he says.

Product breakdown

The company’s dental products and treats saw the strongest growth in the first quarter of 2025. PlaqueOff, a product that helps reduce and control tartar and plaque in cats and dogs, posted 39% growth YoY, becoming Swedencare’s largest brand.

Its other brands, including NaturVet and private labels, saw milder, single-digit growth. Meanwhile, the pharmaceutical business contracted somewhat, with PetMD posting a 9% YoY decline and the segment declining by 6%.

Outlook

Lagerberg says that a boost in sales is expected in Q2 but adds a note of caution to his statement.

“The uncertainty regarding the economy and world trade naturally affects both our customers and us,” he notes. However, he also writes that the company uses many local supply chains, meaning the direct impact of tariffs may be limited.

“If the global economy is negatively affected for an extended period, it will likely impact us, even though the pet market is stable,” he says. “Throughout all crises since 1945, the market has shown annual growth, and my hope is that it will be the same when we summarize 2025.”