Stock Markets April 23, 2026 04:19 AM

SwedenCare posts sales in line with estimates as costs compress margins

Organic growth and strong European momentum offset North American softness, while Amazon-related expenses and trade-fair costs weigh on profitability

By Nina Shah
SwedenCare posts sales in line with estimates as costs compress margins

SwedenCare AB reported first-quarter net sales of SEK650 million, meeting analyst forecasts, with 1% reported growth and 11% organic expansion. Operational EBITDA rose to SEK128 million but missed consensus by 3% as higher external costs - including Amazon-linked expenses and trade-fair participation - reduced margins. Management says demand is stable and expects cost levels to normalize in the second half.

Key Points

  • First-quarter net sales of SEK650 million met analyst expectations - 1% reported growth and 11% organic growth.
  • Operational EBITDA rose 3% to SEK128 million (19.6% margin) but came in 3% below consensus; operational EBIT was SEK103 million, flat year-on-year.
  • Higher external costs, including Amazon-related expenses and trade-fair participation, compressed margins despite strong momentum in Europe and Production.

SwedenCare AB reported net sales of SEK650 million for the first quarter, an increase of 1% versus the prior year and an 11% rise on an organic basis. The top-line performance matched analyst expectations, according to the company.

Operational EBITDA reached SEK128 million for the quarter, a 3% increase year-on-year, producing an operational EBITDA margin of 19.6%. That margin compares with 19.4% in the first quarter of 2025, but the EBITDA outcome was about 3% below consensus estimates.

Company commentary and the results highlighted that profitability was pressured by higher external costs. Management cited increased expenses tied to Amazon-related sales activity and participation in several trade fairs during the period as contributors to the margin compression. The continued sales of NaturVet products on Amazon in the United States were described as affecting margins through the first half, while the company said the development is moving in the right direction.

Geographically, growth was supported by strong momentum in Europe and in the Production segment, which partly offset weaker volumes in North America. By product category, Dental products registered SEK151 million in sales, up 26% year-on-year and up 42% organically. Pharma sales were SEK63 million, rising 195% year-on-year and 94% organically.

Not all lines expanded. Nutraceuticals sales decreased to SEK265 million, down 15% year-on-year and down 3% on an organic basis. Sales in Topicals and Dermatology fell 12% to SEK121 million, though they recorded a 1% increase on an organic basis.

Operational EBIT for the quarter was SEK103 million, effectively flat compared with the prior year, and produced an operational EBIT margin of 15.8% versus 16.0% a year earlier.

Management characterised underlying demand across its key markets as stable. The company also said several of the factors that weighed on profitability during 2025 have been mitigated and that it aims to normalize cost levels during the second half of the year.


Context and implications

The quarter showed a balance between healthy organic growth and short-term cost pressures. While several product categories delivered strong organic expansion, external cost items linked to distribution channels and marketing events reduced near-term profitability. Management's guidance points to an active effort to control costs in the second half.

Risks

  • Persisting Amazon-linked sales costs could continue to depress margins, affecting the consumer retail and e-commerce segments.
  • Softer volumes in North America present a regional demand risk for the company and the broader pet care sector if weakness persists.
  • Elevated external spending on trade fairs and related marketing activities may delay planned margin recovery if not controlled as intended.

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